Another plan for DPC revival

MUMBAI: GE and Bechtel have put forward a three-pronged strategy to the Indian lenders, led by IDBI, to restart Phase I and complete Phase II of $3 billion Dabhol project.
These two US entities, which hold 10 per cent stake each in DPC, have suggested separating the outstanding unpaid contractor claims, relating to the restarting of phase I and completion of phase II, from the equity claims, to expedite negotiations and restart the plant.
Responding to offers made by Rothschild''s, the firm advising Indian lenders, they said the outstanding contractor claims should be settled on an equitable commercial basis as part of the actual restart of the plant.
Resolving these entities'' equity claims through the agreed contractual remedies of independent binding arbitration without judicial or other interference, was the third move suggested by them.
In a letter to domestic lenders, they said "as an act of good faith, they will not make a prior resolution of equity claims a requirement for support of the restart and completion of new Dabhol."
GE and Bechtel, in the letter signed by GE India CEO and president Scott Bayman and Bechtel Enterprises Holdings Inc executive vice-president Richard Smith, said, assuming a commercial agreement can be reached, lenders or new sponsor(s) would be provided with information and assurances of the companies'' participation as suppliers and contractors in restarting the plant and completing phase II.