Executives from Industrial Development Bank of India, or IDBI, other Indian banks and international lenders such as ABN Amro Holding NV decided to meet again today after initially planning a two-day meeting, the bankers said. The meeting was called to resolve a dispute related to power prices that has resulted in Dabhol and the Maharashtra State Electricity Board, its only customer, starting to terminate the project. The fate of Houston-based Enron's first investment in India is seen as a litmus test for future foreign involvement in infrastructure projects in the country.
Indian banks have the most at stake.
Lenders such as ABN Amro, Citibank N.A., a unit of Citigroup, Bank of America and Credit Suisse First Boston in April approved Dabhol's decision to begin termination of its power supply contract with the board. Foreign banks wouldn't comment on what solution they are seeking from the Indian lenders at the Singapore meeting.