Negotiations between the promoters of the Dabhol Power Company (DPC) and the prospective buyers, BSES and Tata Power, have hit a roadblock on the issue of the jurisdiction of the proposed confidentiality agreement.
Enron, General Electric and Bechtel which together hold a 85 per cent stake in DPC are insisting that the confidentiality agreement with Tata Power and BSES be governed under international law. The two domestic companies, on the other hand, are unanimous in their view that the agreement should be subject to Indian law, sources said.
"The two Indian companies have taken this position as they contend that all the three parties to the confidentiality agreement, BSES, Tata Power and DPC are Indian companies, and hence should be governed by Indian laws. Why should the confidentiality agreement then be controlled by international law?,"sources in the lenders