In a bid to restart Dabhol power project, the Maharashtra State Electricity Board and the Industrial Development Bank of India will soon approach the Bombay high court seeking directions in this regard to the receiver who had taken possession of the assets of the company.

"MSEB and IDBI have planned a few steps to be taken simultaneously, including approaching the high court for directions to the receiver," Union power secretary R V Shahi said.

Asked whether the demand of GE and Bechtel, the US investors in the power project, for repayment of their equity and other dues would upset the plans to restart the plant, Shahi said National Thermal Power Corp has been asked to work out details with both the foreign partners to restart the plant.

He, however, said GE and Bechtel have agreed in principle to offer their expertise in assessing the condition of the plant and list out actions to be taken in association with NTPC.

Meanwhile, the ministry of finance has asked IDBI to renegotiate terms and conditions with GE and Bechtel for settlement of their dues and work contract based on milestones to be achieved.

Earlier, foreign lenders led by ABN Amro Bank NV had decided to pull the plug and exit from the project seeking repayment of loans of more than $339 million.

"Given the lack of progress over the last 18 months and extensive costs already incurred by us, we are no longer able to support restructuring of the project. We are seeking repayment of our loans. The amount involved exceeded $339 million as on 30 September 2002 and is increasing daily," ABN Amro had said in a recent letter to Union finance secretary S Narayan.

Stating that offshore banks were major stakeholders in the project, the bank said they had the right to approve any restructuring of DPC due to substantial outstandings and through their inter-creditor agreement and security rights.

Shahi also said that MSEB and IDBI had approached the Maharashtra State Electricity Regulatory Commission for approval of tariffs, mutually agreed by all the stake holders, saying this would help in restarting the plant faster.

Shahi said all these actions listed out by MSEB, IDBI and the National Thermal Power Corporation were being taken simultaneously.