New Delhi: The Empowered Group of Ministers looking into the Dabhol power project fiasco is charting out a strategy to settle the dues of foreign lenders who have filed a claim worth $ 291 million last week.

The Group of Ministers (GoM), headed by Defence Minister Pranab Mukherjee, held discussion with the domestic lenders in New Delhi today (Dec 17, 2004).

None of the Ministers could be reached for comments, but a senior Government official who attended the meeting told sources that the meeting was with lenders.

"We are interested in settling it," the official said without divulging details of the strategy the GoM was adopting to resolve the imbroglio involving 2,184 MW Dabhol plant that is lying idle for over three years.

Apart from Mukherjee, the meeting was attended by Agriculture Minister Sharad Pawar, Science and Technology Minister Kapil Sibal, Cabinet Secretary B K Chaturvedi, Economic Affairs Secretary Rakesh Mohan, Power Secretary R V Shahi and senior officials from domestic FIs.

ICICI managing director Kalpana Morparia, who also attended the meeting, did not make any comment.

The hurriedly called meeting comes in the backdrop of foreign lenders filing a claim worth $ 291 million at an international arbitration court.

Domestic lenders were close to buying out the foreign lenders' debt after long drawn-out negotiations, but could not sign a deal due to delay in getting the counter guarantee from Government.

So, foreign lenders took the legal course, sources said, adding this would put pressure on the Government and domestic lenders to come into an early settlement.