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GE puts rider to restart DPC

NEW DELHI DEC. 5. The proposed restarting of the controversial Dabhol power project has received yet another setback with the promoter GE setting a pre-condition of getting its dues cleared before the start of the project. The Centre, however, has rejected the proposal saying that two issues — restarting the DPC phase-I and clearing the old claims — should not be linked.

``Lately, GE (India) has raised the issue of payment of their equity and their old claims on DPC, but we have told them restarting the plant should be delinked from these issues,'' R. V. Shahi, Power Secretary, told PTI.

In the previous 2-3 rounds of discussion on restarting the phase-I, which has been lying idle for more than 15 months, both the promoters GE and Bechtel had confirmed that they would provide required technical support and assist National Thermal Power Corporation to run the plant, Mr. Shahi said.

NTPC had already finalised the terms and conditions on behalf of IDBI-led financial institutions including the fee to be paid to the two equity partners GE and Bechtel, Mr. Shahi said adding that ``GE and Bechtel had said that such an arrangement was feasible and they would provide all the assistance.'' Asked whether the Centre had communicated its decision to GE (India), he said ``yes and we are hoping to get their response in a day or so.''

Last month, the Centre helped all the stakeholders in resolving the major impasse over the price of power from DPC when IDBI-led FIs agreed to Maharashtra Government's proposal to buy power at Rs. 2.80 a unit from the phase-I project. After this decision an expert team drawn from NTPC, GE, Bechtel and IDBI was supposed to evaluate the technical aspects of the plant and machinery as well as the spares and give the report within a week to facilitate a final decision on restarting the project.

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