Opinion - Letters to the Editor   

Will RBI intervene?

Sir, — The Dabhol Power Corporation, which has been shut for almost two years, owes Rs. 10,000 crores to financial institutions and banks. The project — promoted by the Enron Corporation, which eventually went bust due to financial fraud in the U.S. — has stopped payment of both principal and interest since September 2001. Surprisingly, this account has not been shown as a non-performing asset (NPA) by financial institutions and banks because of the large amount involved. The reason given by them is that the account is coined as a `project under implementation'.

Incidentally this project has not been generating any revenue since September 2001 and hence technically it should have been declared an NPA by financial institutions and banks. Will the Reserve Bank intervene and throw some light on the issue?

Satish Murdeshwar,
Pune

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