The Dabhol power plant can be restarted only after at least six to nine months and hinges on the resolution of a number of micro-issues.

Representatives of the Union and state governments, the Maharashtra State Electricity Board, National Thermal Power Corporation, the domestic lenders consortium and the two US-based companies General Electric and Bechtel are meeting on a weekly basis to try and restart the plant.

"Earnest efforts are underway to resolve the impasse. However, GE, Bechtel and NTPC will first have to undertake a joint study of the plant and arrive at precise measures for the restart of the plant. The study itself will take three to four weeks and then about five to eight months will be required to restart the plant," sources close to the renegotiation process said.

A number of issues will also have to be ironed out. For instance, a number of permissions will have to be obtained for the completion of the 1,444 mw second phase.

Further, a fresh PPA (power purchase agreement) may have to be inked for power offtake from the first phase as the earlier agreement has been rescinded by MSEB.

GE and Bechtel are also keen on their earlier dues of about $140 million being settled. Besides, the support of the foreign lenders to the restart of the power project is critical as they hold veto powers under the inter-creditors agreement.

The offshore lenders are insisting on a solution that includes both phases of the project and not a piecemeal solution as the counter guarantee is not valid for the second phase.

On the positive side, all parties realise the need for a solution and have so far refrained form taking hardline postures.

"The Maharashtra government is keen on ensuring that the Dabhol project does not become an election issue next year. They feel that this could become a tool in the hands of the opposition as there is a peak power shortage of about 2,000 mw in the state," sources added.

Meanwhile, Maharashtra Chief Minister Sushilkumar Shinde on Wednesday said there were no immediate plans to restart the Dabhol plant and for MSEB to buy power.

"There has been no Union government initiative in this regard either," Shinde added.

The Dabhol power plant has been lying idle since May, 2001 when MSEB rescinded the PPA following a payments dispute with the Dabhol Power Company.

Subsequently, the three overseas sponsors Enron, GE and Bechtel which hold a combine stake of about 85 per cent in DPC decided to exit the project whose 740 mw first phase was operational.

The second phase of 1,444 mw was nearing completion.

The Enron Saga