DPC lenders plan 1-2% rate cut to save project

  • 31/05/2001

  • Business Standard (New Delhi)

Lenders to the $3-billion Dabhol Power Project are ready to make "sacrifices" to save the controversial project from sinking. According to sources, Indian lenders--Industrial Development Bank of India (IDBI) and State Bank of India--are considering between one and two percentage point cut in interest rates to bring down the cost of funds for the promoters. Other domestic lenders--ICICI, Industrial Finance Corporation of India (IFCI) and Canara Bank--may also follow suit.