US-based power major AES Corp has offered to reduce the Dabhol Power tariff to below Rs 3 within six months of taking over the project.
All the contracts can be renegotiated and the tariff brought down to levels demanded by Maharashtra within these six months, AES sources said.
Sources said, the lenders can enforce the security clause and transfer management of the project to any other company in the event of default by Dabhol Power Company on its repayment obligations. They however added that DPC has not defaulted on any of its repayments till date.
AES executives told Business Standard that during the six month period, the tariff could easily be brought down to Rs 3 per unit including the transmission costs.