Ministry seeks legal opinion

Our Infrastructure Bureau|

New Delhi, Dec 3: Power ministry has sought legal opinion over the impact of Enron bankruptcy issue on the Dabhol Power Corporation (DPC) in Maharashtra.

Speaking to reporters on the sidelines of the Indian Economic Summit, power minister Suresh Prabhu said that his ministry has already approached law ministry seeking its advice on the impact of insolvency issue on DPC negotiations.

Mr Prabhu said the bankruptcy issue may create legal problems for DPC which will be taken care off. We are looking at ways to cope with the crisis, he said adding that negotiations were already under way between financial institutions , state electricity boards (SEBs) and
bidders.

The move to refer the matter to law ministry comes in the wake of Houston based energy major filing for bankruptcy after Dynegy Corporation backed out of talks to buy out the debt burdened company.