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Tata Power makes formal proposal for Dabhol

Our Bureau

MUMBAI, Sept. 19

TATA Power Company has made a formal proposal to the Centre evincing interest in buying over the 2,184-MW Dabhol Power project. This is the first such proposal from any company since Enron indicated that it wanted to sell out its stake in the controversi al power project.

``We have not quoted any price in the letter which was sent sometime last week,'' said Mr Bomi Shroff, Company Secretary, Tata Power, confirming reports that the company has written to the Government.

He however denied that Tata Power has laid down any conditions, such as buying phase two power at 80 per cent plant load factor, on the buy-out offer.

``There are no specifics in what we have said. We can structure the proposal only if the transaction would prove beneficial to the interests of the company and more importantly, its shareholders,'' Mr Shroff said.

He said details of the offer would be worked out if DPC made a formal offer to sell its stake.

At the company's annual general meeting last month, Mr Ratan Tata, Chairman had said that the group would ``conceivably think of buying DPC if it makes sense for us.''

Mr Adi Engineer, Managing Director, had said that Tata Power was ``waiting in the wings'' to take over DPC at a good opportunity.

``We cannot forget that there is a valuable asset created and lying there and it cannot be wished away. We have our ears close to the ground. But the subject of stepping in does not arise till the legal tangle is solved,'' Mr Engineer had said.