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Reliance non-committal on Dabhol unit bid

Our Bureau

KOLKATA, Dec. 12

RELIANCE Power Ltd appears to be non-committal regarding a separate bid for the Dabhol Power unit (DPC) despite the fact that BSES, in which Reliance holds a substantial stake, has already expressed an interest in DPC.

While talking to reporters on Wednesday, Dr D.V. Kapur, Chairman of Reliance Power, did not altogether rule out any fresh proposal for the Enron project. His statement came on the sidelines of the two-day national seminar on technology management for glo bal competitiveness, organised by the Indian Institute of Plant Engineers.

"Reliance Power will like to see how things develop. Moreover, the company has made substantial investments in BSES over the years. We are holding about 32-33 per cent stake in it and BSES has already expressed its interest in the power unit,'' he said.

He felt a due-diligence of the project should be the first logical step before any bidding took place for the Dabhol power unit. According to him, BSES is currently undertaking such a study, which will focus on aspects, financial and legal.

In this context, he also said payment-security was a major issue. "There must be some sanctity with regard to agreements signed between different parties, and they must be respected over time. Otherwise, it will be difficult for the parties to participat e in the project,'' he said.

Asked categorically if Reliance Power would at all bid for Dabhol or leave it to BSES, Dr Kapur said: "It is too early to make any comment. Anything can happen, but we will certainly like to have a due-diligence done before anything else.''