12 July 2002 – A Report in India’s Economic Times quotes an unidentified official from The Industrial Development Bank of India (IDBI) as saying the offer to buy power from The Dabhol Power Company by the state utility has been rejected by the lender.

“We want the Maharashtra government to consume 75 per cent of the electricity generated by the 740 megawatt phase I plant at INR2.50 per unit,” the newspaper quoted a top-ranking IDBI official as saying.

The Maharashtra State Electricity Board had tabled an offer to buy 50 per cent of the electricity production at 2.25 rupees (46c) per unit.

The IDBI is the leading lender among a group of around 30 domestic and foreign banks and financial institutions which currently control the two-phase 2184 MW Dabhol plant in the Indian state of Maharashtra.

Dabhol ceased operations last year, after its sole buyer, the Maharashtra State Electricity Board, defaulted on its payment obligations to the company.

US energy firm Enron Corp. holds a 65 per cent stake in Dabhol, while MSEB holds 15 per cent. General Electric Co. and Bechtel Corp. each own 10 per cent.