The Hindu : Front Page : Settlement reached on Dabhol project

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Sunday, Jul 03, 2005

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Settlement reached on Dabhol project

Special Correspondent

NEW DELHI: Global power major GE on Saturday announced that it has reached a "comprehensive" settlement with the Union and Maharashtra Governments, the Maharashtra State Electricity Board (MSEB) and the financial institutions concerned on the dispute related to the Dabhol power project.

The settlement ``includes financial consideration in partial payment of various contractor claims for work completed but not paid and in exchange for the transfer of GE's ownership interest in Dabhol,'' a GE statement said.

Complex process

``This has been a long and complex process that GE believes has resulted in a fair and equitable resolution of all issues related to the Dabhol power project,'' Scott Bayman, president and CEO, GE India, said.

``India is an important country to GE's global growth. We look forward to working with our partners, customers and State and Central Governments in helping India continue to develop into a leading world economy,'' he said.

Our Mumbai Special Correspondent writes:

Of a total due of Rs. 630 crores, the MSEB's subsidiary, the Maharashtra Power Development Corporation Limited has paid Rs. 474.88 crores to GE which will now withdraw all court cases and arbitration against the Indian parties. Further its equities and rights in the Dabhol Power Company (DPC) will be transferred to the special purpose vehicle (SPV) and it will support all activities for completing and restarting the power plant.

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