IDBI-led lenders will meet Naresh Chandra panel soon to discuss future course of action on the 2,184 MW Dabhol Power project, before proceeding for a final negotiation with overseas lenders on May 12 in London.

Top officials of IDBI, ICICI Bank, State Bank of India had a "positive" dialogue with overseas lenders in Singapore in the last week of April but could not arrive at a consensus, sources said.

The London meeting will be crucial for domestic lenders in resolving the debacle shrouding the $3 billion Dabhol project, they said.

Before they proceed to London, the lenders are slated to meet high-powered committee comprising Naresh Chandra, Vijay Kelkar and finance ministry officials hopefully this week or early next week.

Lenders have proposed a special purpose vehicle to take over the outstanding dues of offshore lenders and sought government's guarantee.

But this is one of the option, sources said, adding there were other options that were being examined by the committee if the talks with offshore lenders fail.

The committee on Dabhol was formed with the objective of hastening up the process and settle the matter with offshore lenders and the two foreign promoters GE and Bechtel, who own 85 per cent stake in Dabhol Power Company.

GE and Bechtel recently bought bankrupt power giant Enron's 65 per cent stake in the Dabhol.

Once the outstanding dues are taken over by the domestic lenders, they can proceed for calling open bids to sell the company to a new sponsor.

The lenders, which had an exposure in Dabhol at over Rs 6,000 crore (Rs 60 billion), want an early resolution to recover a portion of their funds.

This is despite the fact that DPC has been accounted as a non-performing asset by ICICI Bank, SBI, Canara Bank and others.

IDBI was the last to term it as an NPA and make necessary provisions for DPC.