This proposal has been rejected by Dabhol Power Company, which has said that the two issues – restarting Dabhol Phase 1 and clearing the old claims – should not be linked.

R V Shahi, power secretary for India, said that in the previous rounds of discussion on restarting Phase 1, which has been lying idle for over 15 months, both Bechtel and GE had confirmed that they would provide the required technical support and assist the National Thermal Power Corporation (NTPC) in running the plant. Shahi added that NTPC has already finalised the terms and conditions on behalf of the financial institutions, including the fee to be paid to the two equity partners GE and Bechtel.