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Home  » Business » DPC negotiations likely to start in Feb

DPC negotiations likely to start in Feb

Source: PTI
January 31, 2003 15:14 IST
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The government is expected to hold negotiations with the promoters of Dabhol Power Corporation -- GE and Bechtel -- next week for restarting generation at the power project.

"GE has asked for a meeting next week. I have received a communication to this extent", power secretary R V Shahi said in New Delhi on Friday.

Shahi said the power ministry would fix the meeting and take the discussions forward, and added that Bechtel would also attend the meeting.

The Maharashtra-based, naptha-fired power project has been lying idle for nearly one and half years after it ran into financial difficulties with the state electricity board over payments.

The 740-MW project is promoted by bankrupt US energy major Enron, which holds 65 per cent stake and Maharashtra State Electricity Board with 15 per cent while GE and Bechtel hold the remaining 20 per cent.

State owned National Thermal Power Corporation had agreed to run the power station on behalf of lenders after Enron stopped production in 2001 for which it required technical assistance from the two minority partners.

The meeting is expected to finalise the terms of the assistance for kick starting power production.

Under a deal brokered by former Power Minister Suresh Prabhu, MSEB had agreed to commence power purchases from Dabhol at a fixed rate of Rs 2.80 per unit.

An earlier attempt at finding buyers for the power plant for which Tata Power and BSES had evinced interest had to be abandoned.

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Source: PTI© Copyright 2024 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
 

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