Indian lenders to Dabhol Power Company (DPC) are close to a settlement with Bechtel, which will clear the last major hurdle in reviving the 2,184 MW power plant that has been shut for over four years."The representatives of Indian financial institutions today told the empowered group of ministers (eGoM) that they are negotiating with Bechtel, and hope to reach a settlement in a couple of days," power secretary R V Shahi said after the meeting of eGoM today.The settlement with Bechtel, which along with GE own 85% of DPC, would pave the way for restarting the gas-based plant in Ratnagiri, Maharashtra.The IDBI-led Indian institutions have already reached an agreement with GE for $145 million to be paid in phases, Shahi said, but declined to reveal the amount to be paid to Bechtel.Sources said the eGoM, headed by defence minister Pranab Mukherjee, also cleared a cabinet note containing the entire settlement package on DPC including payments to GE, Bechtel and overseas lenders. The note would now be placed before the cabinet for approval.
