You are here: Home » Finance » News » Others
Business Standard

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.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, November 30 2001. 00:00 IST
RECOMMENDED FOR YOU
.