Indian FIs may skip lenders meet in June

Mumbai, May 22: THE Indian lenders of the Dabhol Power Company (DPC) may skip the forthcoming two-day global lenders meet during June 4-6 in Singapore to discuss the implication of the pre-termination notice served by the former to the Maharashtra State Electricity Board (MSEB).

“We have discussed the crisis with international lenders on several occasions including at the April 25 London meet and the three-day tele-conferencing meet last week. Unless there is something specific on the agenda, Indian lenders are not too keen to attend the Singapore meet, sources said on Tuesday. The Indian lenders, led by the Industrial Development Bank of India, the State Bank of India (SBI) and ICICI, have lent around $1.4 billion out of a total $3 billion for the 2,184 mw project.

The lenders have stopped disbursement of about 20 per cent of the remaining funds of around $800 million for phase-II, owing to the severing of ties between DPC and MSEB over non-payment of Rs 213 crore dues, they added. “We see no reason to release the suspended funds, unless a proper solution is chalked out for all concerned parties including the state government, MSEB, DPC and the Centre,” sources said. They said that foreign lenders led by ABN-Amro were in no mood to comprehend the financial failure of MSEB and argued that the loss-making board should abide by its agreements as per the PPA (PTI)