Wednesday, June 1 2005 14:38 Hrs (IST) - World Time -

Mumbai: Armed with US federal court ruling, Bechtel Corporation has attached the stake of Maharashtra State Electricity Board in Dabhol Power Company, but said that it was ready to help restart the defunct project, once India upholds its legal rights and abides by international obligations.

Bechtel took action when the Indian company failed to meet the May 27 deadline, set by an international arbitration panel last month (May), to pay Bechtel $ 123 million for violation of its shareholder rights in the Dabhol power project, Bechtel said in a release in Mumbai.

The order was delivered by the US District Judge Lewis Kaplan in the southern district of New York, directing the attachment of assets held by Maharashtra Power Development Corporation Ltd, which holds a 14.6 per cent share in DPC.

"Their refusal to acknowledge valid legal orders also sends a very troubling message to foreign investors, whose capital and technical expertise could help modernise India's infrastructure. Nevertheless, we stand ready to help restart the much needed Dabhol facility, once India upholds our legal rights and abides by its international obligations," Bechtel Executive vice president and director Tim Statton said.

US conglomerate General Electric, who along with Bechtel, holds about 85 per cent stake in DPC, has announced to extend all help to the Indian power companies NTPC and BHEL for restarting the 2,184 MW project, which had been lying defunct for past five years.