LOANS OF FINANCIAL INSTITUTIONS
TO DABHOL POWER PROJECT
The Dabhol power
project was constructed using a mix of equity and loan funds.
The equity was brought in by the sponsors viz. Enron, General
Electric, Bechtel and the Maharashtra Power Development Corporation
Limited (MPDGL). The loan funds were advanced by a consortium
of off-shore banks and Indian Financial Institutions/Banks (IFIs).
The exposure of the
IFIs as on date aggregates Rs. 6551 crore (Rs. 3292 crore by way
of fund based assistance and Rs. 3259 crore by way of guarantees).
Phase-I of the project had commenced commercial operation in May,
1999, while Phase-II was under construction. Phase-II of the project
was complete to the extent of around 92 per cent as on 31.5.2001.
Due to certain commercial disputes between Dabhol Power Company
(DPC) and the Maharashtra State Electricity Board (MSEB), MSEB
stopped taking power from Phase-I from May 29, 2001 and construction
of Phase-II was suspended due to termination of construction contracts
on June 17, 2001. From June, 2001 onwards, the expenditure on
asset preservation, security and payment of insurance premia,
was being incurred out of funds available in the accounts of DPC.
From September, 2002 onwards, after depletion of funds in accounts
of DPC, the principal IFIs have been incurring this expenditure.
As on December 2, 2002, IFIs have incurred an expenditure of Rs.
7.26 crore for asset preservation, security and insurance premia.
This information
was given by Smt. Jayawanti Mehta, Minister of State for Power
in reply to a question by Shri Kapil Sibal and Shri Rajiv Ranjan
Singh `Lalan’ in the Rajya Sabha today.
