Dabhol settlement inches closer

The Dabhol settlement process has reached its final leg with Bechtel all set to sign an agreement with domestic financial institutions in a day or two. This would be followed by initiation of the debt recovery tribunal (DRT) process soon.

IDBI chairman V P Shetty, at a press conference in Kolkata today, said, "Final negotiations with Bechtel was over and things have shaped up well. We will sign on the dotted lines in a day or two for the final settlement. We have in the recent past completed negotiations with other FIs and have completed preparation of agreement documents."

"There was no ambiguity or difference in opinion with respect to Bechtel receiving $160 million but they were asking for certain comfort factors which has been sorted out and the final handshake would be done soon," Shetty said.

Indian FIs, over the last seven eight months, have entered into negotiations and settled for receipt of Rs 2,900 crore over a period of time.

About negotiations with GE, Shetty said, "The company has already brought in $110 million, while another $35 million would be paid over time. The deal was for a total of $145 million.

Foreign lenders would be receiving $230 million from Indian lenders, while another $128 million would be from political risk insurance that Dabhol had taken.

There was also a government guarantee of Rs 300 crore which has been paid. Issues on which Bechtel was that asking comfort were tax payment and third-party claims which remained unsettled till last week.

In a parallel development, board of National Thermal Power Corporation has approved an investment of up to Rs 500 crore as share application money in the equity capital of Ratnagiri Gas and Power Private - the joint venture company between NTPC and GAIL India, for taking over the assets of Dabhol Power Project.