Enron wants tax sops for reducing tariff

By Mahesh Vijapurkar

MUMBAI, JUNE 18. The Enron-sponsored Dabhol Power Company today suggested tax sops to bring it on a par with power generating PSUs. It intends to pass on through the Maharashtra State Electricity Board the benefits got from the ``removal of taxes, customs duties, etc.''

But the tariff reduction suggestion was on the condition of DPC ``first'' fulfilling other components such as full capacity and reliable buyers.

So the tariff reduction would only follow DPC's Phase I with 740 MW and Phase II with 1,444 MW achieving full capacity, and DPC getting reliable creditworthy buyers with ``an acceptable security package and contract terms''.

DPC could not have a formal meeting with MSEB today for exploring an out-of-court settlement. MSEB felt that the right forum was the Madhav Godbole Committee which had advanced its June 30 meeting to tomorrow.

The High Court - hearing a DPC petition questioning the jurisdiction of the Maharashtra Electricity Regulation Commission to go into MSEB's plea for damages and annulment of the power purchase agreement - had asked DPC and MSEB to work out an out-of-court settlement.

Informal meetings between the two parties today brought forward the possibility of DPC conveying to the Godbole Committee that it was willing to go as far as it can, if the Centre was fully involved in identifying a new third party buyer.

MSEB does not want to take the responsibility of distributing the DPC power to other scattered buyers as it might be faced with payment arrears.

What it tells the Godbole Committee tomorrow will be the same before the High Court. Mr. E.A.S. Sarma will chair the meeting in the absence of Mr. Godbole.

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