Dabhol ready to start again

GE and Bechtel withdraw legal proceedings

Decks have been cleared to restart the Dabhol power project with GE and Bechtel withdrawing all legal proceedings against the Centre and the Maharashtra government before an arbitration panel in London.

"The arbitration that took place between GE, Bechtel and the government of India concluded with a consent award yesterday in London," sources said today.

The two companies had filed arbitration claims worth over $6 billion (over Rs 25,000 crore) at the London panel for breach of investment protection agreements.

No admission of any liability was made in the settlement agreement between GE, Bechtel, the Maharashtra State Electricity Board and the Maharashtra Power Development Corporation Ltd, the sources said.

As per the terms of settlement, the promoters and the overseas lenders to the project were to drop all claims once the dues were cleared.

The consortium of five Indian banks and financial institutions, which have floated a special purpose vehicle to take over the assets of overseas lenders, will now approach the debt recovery tribunal to restart the project.

A separate SPV "" Ratnagiri Power "" floated by National Thermal Power Corporation and Gail (India) Ltd will be responsible for running the 2,184 Mw facility and completing the second phase of the project.