Chandra may be roped in to solve DPC row

The Union finance ministry is likely to rope in Naresh Chandra, India's former ambassador to the US, to help it solve the Dabhol Power Company (DPC) imbroglio.

Financial institutions led by Industrial Development Bank of India today made a presentation to brief Chandra on the status of the Rs 6,000 crore power project that has been lying idle for nearly two years. Sources associated with the project said Chandra would be an advisor to the government.

Chandra refused to comment on the matter and put the ball in the finance ministry's court. "The finance ministry could be trying something. They would be in a better position to talk about it," he said.

During the last one year or so, Chandra has been associated with two committees to prepare the blueprint for corporate law reforms and is chairing another panel on civil aviation which has been given the mandate to chart out a roadmap for the sector and would form the basis for the much delayed aviation policy.

Sources said the former IAS officer's familiarity with the US could also be used to break a logjam on the issue with ===GE and Bechtel having put their foot down on the restart of the plant without compensation.

A large number of legal proceedings have also been initiated across the globe by the promoters of the 2,144 mw project against the Centre and the Maharashtra government.

So far, at least three committees and a consultant have explored possibilities to restart the project but have not met with any success.

Union finance minister Jaswant Singh is said to be keen to see the restart of the project given the high exposure that Indian banks and financial institutions have in the project as also the fact that the facility in Maharashtra was a high profile investment post-liberalisation which has not been successful.