Rothschild consult india power company
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Lenders To Meet NM Rothschild Today On DPC Revival
Mumbai, Aug 18: An empowered committee comprising Industrial Development Bank of India (IDBI), ICICI and State Bank of India (SBI) would meet leading consultants NM Rothschild on Tuesday to take stock of the situation of Dabhol project revival. NM Rothschild & Sons (India) managing director Munesh Khanna, who had returned from his official trip aboard, is expected to make a presentation to the Indian lenders on Tuesday.
The meeting assumes importance as the IDBI-led consortium, with an exposure of over Rs 6,200 crore in the now-fallen Dabhol Power Company (DPC), has already sought two months extension till September 8 from the Bombay High Cour to submit a comprehensive report on the revival of Dabhol phase-I (658 mw) which has been closed since May 29, 2001.
The meeting is also crucial since the beleaguered DPC has approached the Supreme Court with a plea that Maharashtra Electricity Regulatory Commission (MERC) be restrained from passing any order on the resumption of Dabhol phase-I power by Maharashtra State Electricity Board. Incidentally, IDBI had fully supported MSEBís petition seeking MERCís approval for restarting offtake of Dabhol phase-I power at the per unit tariff of Rs 2.80 at 83 per cent plant load factor.
Institutional sources told FE that IDBI-led consortium, which has roped in NM Rothschild for carrying out a report on the revival of Dabhol phase-I and completion of Dabhol phase-II (1,444 mw), would like to be updated. Further, the IDBI-led consortium would also like to know the progress made by NM Rothschild on its mandate for the preparation of a tender for the sale of Dabhol assets.
The Belgium-based Tractabel, which has been appointed by NM Rothschild as its technical consultant, had already carried out a Dabhol plant visit. According to Tractabelís preliminary report, $15 million would be needed for the revival of Dabhol phase-I. It had emphasised the need for the active involvement of GE, which has 10 per cent stakes in the beleaguered DPC, in the recommissionning of Dabhol phase-I. GE has supplied 9FA turbines for the troubled DPC project. However, Tractabel is believed to have opined that the involvement of Bechtel is not necessary in the Dabhol revival process.