11 April, 2002 – General Electric (GE) and Bechtel say they prefer the sale of the 85 per cent foreign equity in the defunct Dabhol Power Company (DPC) over an asset sale.

“Both GE and Bechtel, who hold 10 per cent stakes each, have formally communicated to the steering committee that they prefer an equity sale over an asset sale….we are sure that Enron will also tow the line and agree to an equity sale,” a top member of the lenders team told the PTI news agency on Wednesday.

He said the lenders were constantly in dialogue with the Enron Corp top officials in US and are very much optimistic about its change of decision.

The equity sale of DPC has been constantly delayed as Enron which holds a majority 65 per cent stake in the company has not been co-operating for such a move by demanding a reserve price of $550m for the stalled $3bn project.

Meanwhile, Industrial Development Bank of India (IDBI) executive director A K Doda told reporters that DPC lenders have decided to appoint financial and technical advisors for either an option of an asset or equity sale.