4 September 2002 – The Industrial Development Bank of India, lead lender to the Dabhol Power Company in India, has stated that the re-start of the power production at the stalled project would be in the interests of all stakeholders.

The Indian financial institutions [IFI] are presently in discussion with the Maharashtra government and Maharashtra State Electricity Board [MSEB] with a view to agreeing terms for the re-start of Phase I of the 2184 MW power project which has been idle for 15 months.

It said issues regarding financial restructuring of the project have been a subject matter among the IFIs and foreign lenders. The modalities for restart would be evaluated and are expected to be finalised shortly.

IDBI clarified in a statement here that it was the IFI’s understanding the Singapore meeting was convened and attended only by offshore lenders of DPC and they were not invited for the meeting. But a senior official from the foreign lenders maintained their officials were invited for the meeting and they had expressed their inability to attend.

Later, Philip Brown, a senior official from Citibank, UK, flew to Mumbai from Singapore to specifically explain to the Indian side the GE and Bechtel’s offer to complete and restart the plant. The two companies remain the only foreign stakeholders after the collapse of Enron but so far the IDBI has rejected the firms proposals to recommence operations.