BUSINESS

Overseas lenders' claim on DPC

MUMBAI NOV. 6. Overseas lenders have set in motion the process of claiming over $171 million plus costs and expenses from the troubled Dabhol power project, serving a notice on the Indian Government for failing to fulfil its obligation of protecting foreign investment.

The notice was today served on the Government under the bilateral investment treaties between India, Austria, France, the U.K., the Netherlands and Switzerland, where the offshore lenders are incorporated.

The claims arise out of the problems affecting the project and reflect lack of progress by the Government over the last two years to agree to a solution that recognises both the nature of these problems and the rights of the offshore lenders, Dua and Associates, legal counsel for the lenders, said here in a statement.

The claimants have invited the Government to engage in negotiations towards an amicable and comprehensive settlement of all offshore claims of the lenders, failing which the dispute would be referred to the international arbitration, it said.

These claims are supported by the offshore members, including Overseas Private Investment Corporation of the U.S. and five international banks.

Banking sources said ABN Amro has a claim for $77 million, CSFB of Switzerland $35.3 million, ANZ EF $35.2 million, BNP Paribas $14.6 million and Erste Bank of Austria $9.5 million. — PTI