Financial Daily from THE HINDU group of publications
Wednesday, Apr 03, 2002
Money & Banking - Non-Performing Assets
Dabhol account not an NPA right now: Vora
MUMBAI, April 2
THE Dabhol Power Company (DPC) account will not become a non-performing asset (NPA) as on March 31, 2002, Mr P.P. Vora, Chairman, IDBI, has said.
The DPC account would remain standard in the books of lenders for the year ended March 31, 2002, Mr Vora said. The account would not become sub-standard as "money has come in from the trust and retention account," he told Business Line on the sidelines of the Banking Summit 2002 organised by CII.
"The account would become sub-standard only if it is not serviced for two quarters. But there has been a payment in January. So it would remain standard," he said.
Mr Vora declined to say the quantum of repayment. He merely said the account "would not become an NPA."
All lenders to the company, including overseas lenders, would meet on April 8 and 9 to decide the future course of action vis-à-vis the project.
Receiver takes charge: The court receiver has taken over the assets of the company, but the lenders have not effected a "seizure." It would "happen ultimately but has not happened yet. All outstanding issues would be discussed at the meeting next week," he said.
The Mumbai High Court, while appointing a receiver for the assets of DPC, had also allowed the lenders access to the account maintained by the company with Bank of America (BoA) here.
Meanwhile, prospective bidders for the 2,184-MW power plant seem to be in complete darkness about the future of the sale process. "We have no idea about what the lenders have planned or if they have any plans to seize the asset," Mr R.V. Shahi, Chairman and Managing Director, BSES Ltd, told Business Line.
"We have been told only one thing. That we wait for the due diligence process to begin. We have been waiting for the last two months," Mr Shahi said.
Mr A.K. Doda, Executive Director, IDBI, had told Business Line that there were a few millions in the company's account with BoA.
Send this article to Friends by E-Mail
Stories in this Section
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |
Copyright © 2002, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line