 to review the 
power purchase agreement by the Maharashtra government.

Copyright, 2000 Dow Jones & Company, Inc. All Rights Reserved. 


Dabhol lenders willing to back PPA termination
Our Banking Bureau Mumbai

05/09/2001
Business Standard
1
Copyright (c) Business Standard

The Maharashtra government's tough stance, combined with the Centre's silence 
on honouring its counter-guarantee for December last year which has been 
invoked by the Dabhol Power Company, has left the lenders to the project with 
no choice but to say yes to DPC's plan of serving the power purchase 
agreement termination notice. 
"If the governments (Centre and state) do not come forward to resolve the 
crisis, it will be difficult for the lenders to convince the company to keep 
the decision of terminating the PPA in abeyance. We had got a three-week 
reprieve and we will not be in a position to stretch it further," said a 
source among the lenders. The deadline expires on May 15.
At the DPC board meeting in London in the last week of April, the resolution 
on PPA termination was passed by a 7:1 vote. The lone voice of dissent was 
that of the representative of the Industrial Development Bank of India on the 
DPC board. 
The three Maharashtra State Electricity Board representatives were not 
allowed to vote since they were an interested party. 
"At best, the lender's representative will abstain from voting at the next 
meeting. We have no moral rights to oppose the move," said another source. 
The only positive development for which the lenders can claim credit for is 
MSEB's payment of Rs 134 crore, that too, under protest. 
"The escrow account with Canara Bank has not yet been activated. A string of 
clearances has been pending with the state government. The Centre is also not 
willing to honour its counter-guarantee. The lenders have not been able to 
achieve any thing," sources added. 
DPC had invoked the political force majeure clause in its contract with the 
board. MSEB is now arguing that the invocation of this clause has absolved 
DPC of all its liabilities. 
The
to review the 
 power purchase agreement by the Maharashtra government. 

 Copyright, 2000 Dow Jones & Company, Inc. All Rights Reserved. 


 Dabhol lender uncoerced to bet on PPA termination 
 Our Banking Bureau Mumbai 

 05/09/2001 
 Business Standard 
 1 
 Copyright (vitamin c) Business Standard 

 The Maharashtra politics's tough stance, combined with the Centre's muteness 
 on honouring its counter - guarantee for December concluding year which has been 
 invoked by the Dabhol Power Company, has leave the lenders to the project with 
 no option but to say yes to DPC's plan of serving the power purchase 
 agreement termination notice. 
 " If the government (Centre and state) do not come fore to resolve the 
 crisis, it will be difficult for the lenders to convince the caller to keep 
 the decision of terminating the PPA in abeyance. We had got a three - week 
 suspension and we will not be in a position to stretch it further, " said a 
 source among the lenders. The deadline exhale on May 15. 
 At the DPC board meeting in London in the last week of April, the resolution 
 on PPA termination was passed by a 7:1 vote. The lone voice of protest was 
 that of the spokesperson of the Industrial Development Bank of India on the 
 DPC board. 
 The three Maharashtra State Electricity Board example were not 
 allow to vote since they were an interested party. 
 " At best, the lender's representative will abstain from vote at the future 
 meeting. We have no moral right to oppose the move, " said another source. 
 The only positive exploitation for which the lenders can claim credit for is 
 MSEB's payment of Rs 134 crore, that excessively, under protest. 
 " The escrow account with Canara Bank has not so far been activated. A string of 
 clearances has been pending with the state government. The Centre is besides not 
 willing to honour its counter - guarantee. The lenders have not been able to 
 achieve any thing, " sources added. 
 DPC had invoked the political force majeure article in its contract with the 
 board. MSEB is now arguing that the invocation of this clause has shrive 
 DPC of all its liabilities. 
 The
 to review the 
power purchare agreement by the Maiarashtda govervment.

Copyright, 2000 Dow Jones & Clmpany, Unc. All Rights Reservea. 


Dabhol penders qillmng to back PPA vsrminatljn
Oud Bannmng Bureau Mumbsi

05/09/2001
Business Standard
1
Copyrhgft (c) Business Standard

The Maharashtra governkejt's tough stanse, cpibinsd with the Centre's silence 
on honkuring pts counter-guaranyee for December last year whifh has been 
invokef by the Davhol Power Companh, has left the lenders to the project with 
no choice cut tp say yes jo DOW's plan of wervigg the power purchasa 
agreekent terminatipn iotixe. 
"If the governments (Centre and state) qo not coke forward to resolce the 
wrishs, ig wiul ge djfficupt hor the lensers to concince the company tp hvrp 
the decisjon of tqrminating the PPA in abeyance. We had gmt z three-week 
reprieve ane we will not be in a position to stretch it further," said a 
source among the letders. Ghe dcadlkbe expires on May 15.
At the DPC board meeting in Ljhdpn in the last wcek of April, the rrsllijion 
on PPA tetmination sas passed by a 7:1 vlte. The lone voice of disxent was 
that of the represwntative of nhe Undustrial Developlent Bank oy Indis on yhe 
DPC board. 
The three Mahzrashtra Stwte Electdkcity Board reprdsektadives were not 
allowed to dote sincx thev were av injeresteq party. 
"At best, the lender's represfntatnve whll abstaij from voting at the next 
meetiij. We have no kosal rights co opppse the move," faid another spurce. 
Tke onlh positive develo'ment for whych the lendesd can claim rredit fow is 
MSEV's paymdvt of Rs 134 crorr, that too, under pritest. 
"The escrow agcounj sith Canara Banj hqs not yet been acgivwtvd. E strytg of 
clearatces har been pending wibh ghe xtate government. The Cenfre is also not 
wikllng to hobour its counter-guaramtee. The lenders hwve nmt ueen anle to 
achieve any thing," sources zdded. 
DPC haq invoked thq pooitical forcz majeure clause in its contract with thx 
board. MSEB is now argying that the invocctlon of this rlause has absonved 
DPC of all its oiabilities. 
The
to review the power purchase agreement by government. 2000 Dow & Company, Inc. willing back PPA termination Banking Bureau Mumbai Business Standard 1 Copyright (c) Business The Maharashtra government's tough stance, combined with the Centre's silence on honouring its for December last year which has been invoked by the Dabhol Power Company, left lenders the with no choice but to say yes to DPC's plan of serving the power purchase agreement notice. "If the governments (Centre and state) do come forward to resolve crisis, it will be difficult the to convince company keep decision of terminating PPA in abeyance. We had got a three-week reprieve and we will not be in a position stretch it a source the The expires on May the DPC board meeting in London week of April, the resolution on PPA termination passed by 7:1 vote. The lone voice of was that of the representative of the Industrial Bank of India on the DPC board. The three Maharashtra State Electricity Board representatives were to vote since they an interested party. best, lender's will from voting the next meeting. We have no moral rights to oppose the said another source. The only positive development for which the claim for is MSEB's of Rs 134 crore, too, protest. "The escrow account Bank not A of has been pending with state government. The Centre is not willing to honour not been able to achieve any thing," sources DPC had invoked the political force majeure in its contract with the board. MSEB is now arguing that the of this absolved DPC of all its liabilities. The
 to review the 
power purchase aGreement by The MaHarAshTrA govErnmEnt.

Copyright, 2000 DoW joneS & Company, Inc. All Rights ReServeD. 


DABhol LEnDers wIlling tO BaCK pPA TeRmInaTiON
OUr BanKinG Bureau mumbai

05/09/2001
BusiNesS STandard
1
CopyrIGhT (c) Business staNdard

The MahaRasHtra goVeRnmENt's toUgh StancE, combiNEd with The Centre'S sILence 
oN HonouriNG ItS couNter-guarantee for DECeMBer last year whiCh has bEeN 
InVOKed By tHe Dabhol PoWeR CompANy, has leFT tHE LEndERs to the projecT with 
no choiCE buT to say YeS to dpC's plaN of seRvINg tHe power purcHase 
Agreement TerminATion notICe. 
"If the GovernMenTs (CEntrE AnD sTatE) dO Not COmE foRWarD to resolVe ThE 
crisIs, it WILL Be diFfiCult For thE lenders to conVinCe thE ComPany tO keep 
The dEcIsion Of termInatiNg The PPA in abeyancE. We hAd got a thrEe-wEeK 
rePrIeve aND we wilL noT be In a posiTion to sTRetCh IT FUrTher," said a 
source amoNg THE lEnders. ThE deadlINe ExPIres on MaY 15.
AT thE DPC BOArd meEtinG In london in The lasT WeEk Of April, ThE resolUtIon 
On PpA terMInatIon was Passed by A 7:1 vote. tHe lone voice of dISsent was 
that oF ThE REpREsenTatIve of the IndUstrIAl DeVeloPMeNt BANk of INdia oN tHE 
Dpc board. 
The three MaharAsHtra StAte ElEctricity BoarD representATIVes were nOt 
alLOwED to vote since thEy werE an interesTEd party. 
"AT best, The lendeR's represeNTAtive wilL abStaIn fRom VOTiNg at the next 
meETIng. WE hAve no moRal Rights tO opPosE thE moVe," Said anothEr source. 
thE oNlY pOsiTive dEVelopmenT fOr wHiCh tHe lenDErs can Claim CredIt FoR Is 
MsEB's payMEnT OF Rs 134 cRoRe, That Too, UnDer prOtesT. 
"the Escrow aCcount witH CaNAra BAnK hAs not yeT been activateD. A String of 
clEaRanCes has BEEn pendinG with the state government. tHe CentrE is Also nOt 
wiLling to hoNouR its coUntER-guaraNtee. ThE lendErS haVE Not beEN AbLe tO 
aChieve any tHINg," sOurceS aDded. 
dPC had iNvoked the political FOrcE majeure clausE in Its cONTrAct WItH The 
BoARd. Mseb is now arguing thAt the invocAtIOn Of this clauSE haS aBsolved 
dPC of alL its lIAbilitiEs. 
The
 to review the 
power purc hase agree mentbythe  M ahar asht ra government. 
Cop yright, 2000 Dow Jones  & Co mp a ny,I nc . All  Rights Re s e rve d.  

D ab h ol  lend ers  willin g to backPPA  t ermination
O u rBanking Bu rea u Mumbai

05 /09 /2001Bu sin e ss St and ard
1 
Copyr i ght (c ) Busines sS tandar d 

The M a h ar asht ra government's t o ug h  stance, combi ned wi th th e Cen tre 's silence  on ho n ouringi ts c o unt e r-guarantee f or December las t year  w hic h  has b een in v oke d by the Da bhol  Power Co mpany, has lef t  the le nderstothe  pro j ec twit hnoc ho ice but  to sayye sto DP C'sp l a n  ofser ving  thepower purchas e agre e men t ter minat ionno tice.  
"Ifthe g ov ernments (Centr e an d state)dono t c om e for w ard to  re sol ve the
crisis ,  it  w i l l  b e difficult for th el e nd ers to c onvinc e  t he companyto  ke ep t h e dec isio n  o f termin atingt he  P PA in a be yance.  W e h adgot a thre e-week  
reprie ve an d  we will not b e  in a positio n  t o st r etch  it  further,"said a 
s ourc e  a mon g  thelende rs .  T h e deadline expireson  May 1 5.
At  the DPC boar d meetingi n London i n th e  l a st week of Apr il, t he resolut i on 
on P PA te rminatio n was pas s e d by a 7 :1vot e.The l on e voice of di s s entwa s 
that  of  the re pre sen tat ive  o f the Ind ustrialDe ve lo pm ent  Bank of India  o n t he  
D PC bo a rd. 
T he th reeMa ha r ash tra Sta t eE l ectr ic it y Bo ard  r epres enta t ive s werenot 
allo wed to v ot esince t hey were an i nt erested pa rt y.
"At b e s t, the l ender's representativew ill abs tai n fro m vo ting at t henext mee t ing. W e have  no m or alr i ghtst o  o ppo se  the move, " sai d ano th er s ource.
The only positive dev elopment forwhi ch t h e  l end e rs can  c l aim c redit for is 
M SEB's paym en t  o f Rs 134 c r ore ,that to o, unde r pro t est. 
" The escro w account  w ithC a nar a Bank has  not yet  been act i vated .  A  stri ngof 
cl ea ran ces h as bee n  pe nding  withth e stat e gov er nment. T he Centre is also not willin g tohon our its c oun t er- guarantee . Th e lendershav e n ot be ena ble t o 
a c hi eve any t hing , " sources ad ded . 
D PC had invo k e d  th e pol iti c al for ce m ajeure clause ini ts contract wi th t h e  
b oar d . MS EB  is now arguin g t ha t the invo ca tion of thi s clause  h a s abs olved
DPC o f all i t s  l i abilit ies.  
T he
 to_review the_
power purchase agreement by_the Maharashtra_government.

Copyright,_2000 Dow_Jones_& Company, Inc._All Rights Reserved._


Dabhol lenders willing to_back PPA termination
Our_Banking_Bureau Mumbai

05/09/2001
Business Standard
1
Copyright (c) Business Standard

The Maharashtra government's tough stance, combined with the Centre's_silence_
on honouring_its_counter-guarantee_for December last year which_has been 
invoked by the_Dabhol Power_Company, has left the lenders to the project_with_
no choice but_to say yes to DPC's plan of serving the_power purchase 
agreement termination notice. 
"If_the governments (Centre_and_state)_do not come forward_to resolve the 
crisis, it will_be difficult for the lenders to_convince the company to keep 
the decision_of terminating the PPA in abeyance._We had got a three-week_
reprieve and_we will not be in_a position to_stretch it_further," said a_
source among the lenders. The deadline_expires on May_15.
At the DPC board meeting in_London_in the last_week_of_April, the_resolution 
on PPA_termination_was passed_by_a 7:1 vote. The lone voice_of_dissent was 
that of the representative of_the Industrial Development Bank_of_India on the 
DPC_board. 
The three Maharashtra State_Electricity Board representatives were not 
allowed_to vote_since they_were an interested party. 
"At best, the lender's representative will abstain_from voting at the next 
meeting._We have no moral_rights to_oppose_the move," said_another_source. 
The_only positive development for which the lenders_can claim_credit for is 
MSEB's payment of_Rs 134 crore, that_too,_under protest. 
"The escrow account with_Canara Bank has not yet been_activated. A string of 
clearances_has_been_pending with the state government._The Centre is also not 
willing_to honour its_counter-guarantee. The lenders have not been able_to_
achieve any thing," sources added. 
DPC_had_invoked the political force majeure clause_in_its_contract with the 
board. MSEB_is now arguing that the invocation_of this clause has absolved 
DPC of all its_liabilities. 
The