A solution to the vexed Dabhol Power project in Maharashtra appears to be in sight with the IDBI-led consortium meeting foreign lenders in Singapore on Thursday to take over $210 million worth of debt of the company.

"The financial institutions -- IDBI, ICICI Bank and State Bank of India -- are working on it. They would get back to the finance ministry in a week's time," Naresh Chandra, who heads the panel on Dabhol, told PTI in New Delhi on Wednesday.

The panel, which also has finance minister's advisor Vijay Kelkar as its member, met the lenders in the second week of this month to take stock of the situation.

"Not much progress has taken place till now (in resolving the Dabhol debacle)," Chandra said.

The high-powered committee is believed to have asked lenders to hasten up the process and settle the matter with GE and Bechtel, who have recently taken over 65 per cent stake of the bankrupt power trading giant Enron.

The two foreign partners now hold 85 per cent stake in DPC that owes over Rs 4,000 crore (Rs 40 billion) to IDBI, ICICI Bank, SBI and others.

Top officials of IDBI, ICICI Bank and SBI are flying to Singapore to meet offshore lenders on April 22-23.

The IDBI-led lenders have decided to form a special purpose vehicle to take over the debt.

It is also understood that they have sought government guarantee for the SPV.