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Idbi Not To Attend Dabhol Lenders Meet Today

The representatives of the Industrial Development Bank of India (IDBI) will not be attending the meeting by the global lenders to the Enron-promoted Dabhol Power Company (DPC) in London on Friday. They will also stay from the DPC board meeting at London on the same day.

IDBI chairman P P Vora told newsmen, " We have decided to stay away from both meetings". He declined to give further details.

Another senior IDBI executive later said that the timing of the global lenders meeting was not convenient.

The steering committee of lenders comprising, Credit Suisse First Boston, Citibank, Bank of America, OPIC, ANZ Investment Bank is slated to meet tomorrow to discuss the issue of authorising DPC to serve a final termination notice to the Maharashtra State Electricity Board.

IDBI too is part of this steering committee.

The DPC board too is meeting to authorise managing director, Wade Cline to serve a final termination notice.

However, the issue is caught up in legal tangles with the Indian financial institutions having obtained an injunction form the Mumbai high court restraining, DPC from serving such a notice.

Enron is trying to sell its equity stake in DPC following a payments dispute with MSEB and the Tata Power and BSES are keen on buying this equity. After the global takeover of Enron by Dynegy has fallen through there is speculation that the US based energy major may declare bankruptcy and consequently affect the sale. Vora said that this had led to a very interesting situation but declined to elaborate further.

The combined 85 per cent stake held by Enron, General Electric and Bechtel are pledged to the lenders. "We also have first charge on the assets of the Dabhol Power Company," Vora added.

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First Published: Fri, November 30 2001. 00:00 IST