IDBI invites EoIs for 85% stake in Dabhol Power

Mumbai, January 30: | Updated: Jan 31 2002, 05:30am hrs
The rupee lenders’ consortium leader Industrial Development Bank of India on Wednesday invited expressions of interest (EoI) from Indian and global players for picking up 85 per cent stakes held by Enron, GE and Bechtel in the distressed Dabhol project. The interested parties have to submit EoIs on or before February 7 and have been asked to deposit $1 lakh with IDBI.

IDBI, which has an exposure of Rs 2,121 crore in Dabhol project, has made it clear that "in inviting the EoIs, IDBI does not act as an agent of Dabhol Power Company (DPC), offshore sponsors or any other stakeholder." IDBI has mandated Rotschild, DSP Merill Lynch along with Suisse Securities to act as global advisors for the deal.

According to IDBI advertisement on EoI, a company should have a networth $200 million (or its equivalent in Indian rupees) or in case of EoI to be submitted by a consortium of companies, a collective networth should be $400 million (or its equivalent in Indian rupees). These contenders should have requisite experience, inter alia, in managing/operating power/natural gas/Liquefied Natural Gas (LNG) plants and facilities.

Tata Power Company (TPC), BSES Ltd and the state-run Gas Authority of India Limited (GAIL), which have already submitted their EoI would not have to file it again to IDBI. However, in case of response from a large number of parties, IDBI has made it clear that there would be a shortlisting of parties, based on their EoIs for taking up the process of due diligence.

These shortlisted parties would be known as qualified interested bidders (QIBs). These QIBs would be provided an overall framework and a set of broad parameters based upon which they would be ultimately required to bid. In addition to this, QIBs would be needed to enter into a confidentiality agreement with DPC and the offshore sponsors within seven days from the date of communication of shortlisting too the QIB by

IDBI.

According to IDBI, DPC has agreed to provide an access to QIBs to the data room located in London and a site visit, "if so required by the QIBs for the purpose of due diligence."