Govt. realistic over Enron 'threat'

By Alok Mukherjee

NEW DELHI, MAY 2. The Centre has taken a ``realistic'' position on the Enron issue and is not unduly perturbed about the likelihood of Enron Corporation eventually pulling out of the Dabhol power project in Maharashtra.

``We set up a re-negotiating committee, but we also took into consideration the possibility of the re-negotiations failing. What then?'' highly-placed sources in the Union Ministry of Power told The Hindu here today. The contribution of the Dabhol Power Company to the country's energy supply was extremely marginal and would not affect the overall power supply situation, they said.

On the possible financial burden, the sources indicated that if Enron pulled out on its own, the Centre would sell its assets to some other company and recover its investments. If the matter went into arbitration, ``we will protect our interests, as Enron will be expected to protect its interests,'' the sources said.

The view in the Power Ministry is that the Enron issue would not adversely affect foreign direct investment. ``After all, it is one of the many investments made in India and it is extremely likely that some of the investments may fail. Commercial disputes are also possible when commercial investments are made.''

It was also pointed out that international investors were aware of the fact that the Enron Corporation, as a global entity, was re-focussing its core business and was shifting away from energy production to trading and other activities. That Enron's pullout from the Dabhol project could also be prompted by this re- focussed strategy was also known to international investors.

State plea to Enron

UNI reports from Mumbai:

The Maharashtra Government today formally asked the Enron Corporation to depute a team for renegotiation of the power purchase agreement with the expert panel headed by former bureaucrat, Mr. Madhav Godbole, on May 5.

``We have formally requested the DPC president to send a team for renegotiation,'' said Mr. V. M. Lal, State Energy Secretary. ``We will be awaiting their response to commence the talks on Saturday,'' he said after attending a meeting with officials of the Electricity Board and members of the panel.

Send this article to Friends by E-Mail

Section  : National
Previous : Rajiv killing: Swamy's plea
Next     : MoD extends probe panel term