Tata Power Company has tied up with British oil major BP for a "joint evaluation" of Dabhol power project that has been lying idle and deteriorating for several months.   

"We teamed up with BP to make a combined effort for finding an economically viable solution towards the restructuring of the project," TPC managing director Firdose Vandrevala said in Mumbai on Monday.

In a notice to the Bombay Stock Exchange, the company has stated that it has signed a memorandum of understanding with BP Global Investment Ltd to jointly participate in evaluating the Dabhol power project.

"This is our own initiative and we shall look at all the options for getting the project back on track together," he added.

Vandrevala said TPC was interested in buying the promoters' entire equity in the project.

TPC has been a front runner for taking over the $3 billion project ever since Industrial Development Bank of India decided to sell the foreign equity in Dabhol Power Company in February 2002.

The Tatas had offered to run the 2,184 mw plant for free for a duration of three months, which was later rejected by IDBI.

Interestingly, IDBI had rejected BP's expression of interest early last year, stating that it was late in submitting the same.