No deadline for resolving Dabhol row

The Empowered Group of Ministers (EGoM), which is looking into the debacle of the Dabhol power project, hopes to come up with a solution that will be "acceptable" to all parties concerned including promoters GE and Bechtel and the IDBI-led consortium of lenders.

"We are working towards a solution which is expected to be acceptable to all parties," Defence Minister Pranab mukherjee, who heads the E-GoM, told reporters on the sidelines of PHDCCI's 99th annual general session here today.

Even after four meetings having been held, he declined to give a deadline within which the matter would be resolved.

The process to resolve the DPC issue picked up momentum after the UPA assumed office. The government set up an E-GoM and asked the Cabinet secretariat to look into the issue.

The E-GoM has asked PSUs like NTPC and Gail to assist in restarting the power plant. The high-powered panel has also asked domestic lenders to buy the offshore debts.

For this, a special purpose vehicle is to be set up by the Indian PSUs and lead lender IDBI. The E-GoM has given in principle nod for this.

The effort to restructure and restart the 2184 mw Dabhol power plant comes in the wake of concerns raised by foreign promoters and the 6 billion dollar claims filed by them in international arbitration at london for alleged breach of bilateral investment protection agreement.