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Watching outcome of Enron issue: Ambani

Our Bureau

MUMBAI, April 30

THE Reliance group is closely ``watching and waiting'' the outcome of the on-going controversy over Enron's Dabhol power project to make any further move vis-a-vis its Patalganga power project expansion.

Mr Anil Ambani, Managing Director, Reliance Industries, said the company is waiting for the State Government's decision regarding independent power producers (IPPs) and also how the reforms in the power sector shape up.

``They (Government) are also saying that the State would not need the power. In any case, there is provision in our power purchase agreement (PPA) with MSEB to sell power outside,'' Mr Ambani said.

Asked if Reliance is interested in taking over the Dabhol Power Company (DPC), he merely said the company has an open mind. ``Enron is still running DPC. They are our partners in oil exploration. We look at value propositions as and when they arise. We h ave an open mind,'' he said.

The 447-MW, LNG-based Patalganga project had run into trouble when the Maharashtra State Electricity Board (MSEB) declined to provide escrow cover citing financial constraints. The project, which is yet to achieve financial close, is awaiting the Governm ent's decision on the matter.

The Energy Review Committee headed by Dr Madhav Godbole, had recommended in its interim report that all PPAs with IPPs be deferred and they also be made public.

``Neither of the two IPPs - Reliance Patalganga and Ispat Bhadravati - are today contractually structured to meet the needs of intermediate and peaking load in either MSEB or Maharashtra... allowing these IPPs to proceed, as currently structured, will on ly result in a problem similar to DPC re-emerging in future. Therefore, the panel recommends that MSEB defer all PPAs with IPPs and re-examine them in accordance with a Least-Cost Plan and, in any case till such time the demand levels in the State permit , full absorption of power generation from such IPPs,'' the panel had observed.

Pic.: Mr Anil Ambani, Managing Director, Reliance Industries announcing the results of RIL and Reliance Petroleum, at a press conference in Mumbai on Monday.

Picture by Shashi Ashiwal