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Indian lenders to meet Dabhol panel

5 May 2004 – A group of lenders led by the Industrial Development Bank of India (IDBI) will meet the Naresh Chandra panel soon to discuss future course of action on the stalled 2184 MW Dabhol Power project in India, before proceeding for a final negotiation with overseas lenders on May 12 in London.

Top officials of IDBI, ICICI Bank, State Bank of India had a “positive” dialogue with overseas lenders in Singapore on April last week but could not
arrive at a consensus, sources said.

The London meeting will be crucial for domestic lenders in resolving the debacle shrouding the $3bn Dabhol project, they said. Before they proceed to London, the lenders are slated to meet high-powered committee comprising Naresh Chandra, Vijay Kelkar and Finance Ministry officials hopefully this week or early next week.

Lenders have proposed a special purpose vehicle to take over the outstanding dues of offshore lenders and sought government’s guarantee.

But this is one of the option, sources said, adding there were other options that were being examined by the committee if the talks with offshore lenders fail.