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Home  » Business » No decision yet on Dhabol: Pranab

No decision yet on Dhabol: Pranab

Source: PTI
February 11, 2005 12:24 IST
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The group of ministers on Dabhol discussed ways to restart the ailing 2,184 MW project, lying idle for more than three years, but did not reach any conclusion, Defence Minister Pranab Mukherjee said.

"We discussed and reviewed (the ways to restart the Dabhol project) but have not reached any final conclusion," Mukherjee, who heads the GoM, said after the meeting.

When asked about Power Minister P M Sayeed's statement that a solution to the project was in sight, he said he could not disclose at the moment whether the solution is "in sight or out of sight".

"We are trying to resolve (the problems inflicting the Dabhol project). But I cannot disclose at the moment. I will tell once we reach a final conclusion," he said.

On whether any progress had been made in the talks with the lenders, he said it is an ongoing process.

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Sayeed had last week said an amicable solution of the Dabhol imbroglio was in the offing as "significant progress has been made" in this regard.

When asked about details of negotiations with foreign lenders and other stakeholders, the Power Minister said, "We are still working it out... there should be a solution soon."

Besides, Sayeed and Mukherjee, the meeting was attended by Agriculture Minister Sharad Pawar, power secretary R V Shahi and IDBI chief managing director M Damodaran among others.

The government had earlier proposed forming a special purpose vehicle with equal participation from public sector NTPC and GAIL, though no decision has been taken so far.

The process to revive the beleaguered power plant, once billed as the single-largest foreign direct investment in the country, gathered momentum after foreign lenders and majority shareholders in Dabhol Power Company -  GE and Bechtel – filed arbitration proceedings to the tune of $6 billion against the government.                                                                                 

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