The Hindu Business Line : Dabhol's foreign lenders file arbitration notice against Indian FIs

OFFSHORE lenders to the Dabhol power project on Thursday filed an arbitration notice in London against their Indian counterparts led by the Industrial Development Bank of India (IDBI) to settle differences on the failed power project. The notice was filed under the United Nations Commission on International Trade Law (UNCITRAL) rules.

The offshore lenders had, on April 3, voted to instruct Dabhol Power Company to terminate its Power Purchase Agreement (PPA) with the Maharashtra State Electricity Board. However, the Indian lenders blocked the move by obtaining an injunction from the Bombay High Court, a press statement, issued here on Thursday by Dua Consulting on behalf of the foreign lenders, said.

"The arbitration relates to a dispute under the Dabhol Inter-Creditor Agreement resulting from actions taken by IDBI, ICICI, State Bank of India and IFCI which have blocked offshore lenders from pursuing their rights embodied in the financing documents," the statement said.

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