Lenders given two weeks to resolve Enron dispute<\/p>\n
NEW DELHI (AP): The Indian government has given financial
\ninstitutions two weeks to develop a plan to resolve the dispute
\nwith Enron Corp. over India's largest foreign investment project,
\nnewspapers reported Friday.<\/p>\n
Houston-based Enron has said it wants to sell its 65 percent
\nstake in the 90 percent complete Dabhol Power Co. project for a
\nminimum of US$1 billion.<\/p>\n
The $2.9 billion project has been idle since May 29, when its
\nonly customer, the Maharashtra State Electricity Board, stopped
\ndrawing power and paying bills because of what it said were
\nexorbitant prices established in a seven-year-old contract.<\/p>\n
Finance Secretary Ajit Kumar met with executives of the
\nIndustrial Development Bank of India and other banks on Thursday
\nand gave the deadline for a plan to avoid the case ending up in
\nan international arbitration court, The Financial Express and
\nBusiness Standard reported.<\/p>\n
The Express said the plan is to include an out-of-court
\nsettlement with lenders and promoters, rescheduling of loans to
\nmake the project attractive to new investors, and lower prices
\nfor electricity produced by the plant.<\/p>\n
The Express quoted the development bank's executive director,
\nV.P. Singh, as saying the lenders would act as intermediaries
\nbetween the seller and prospective electricity buyers, to get the
\nproduction restarted.<\/p>\n
Enron has said the sellout deal must involve no loss to the
\nHouston company, or to it's two co-investors, General Electric
\nCo. and Bechtel Corp., which each have a 10 percent stake in the
\n740-megawatt plant that produces electricity from naphtha.<\/p>\n
The project was designed to generate 2,184 megawatts as the
\nworld's largest natural gas-fired power plant.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/lenders-given-two-weeks-to-resolve-enron-dispute-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}