• PAGE ONE
• INDEX
• HOME

Enron hopeful of solution on DPC

Our Bureau

NEW DELHI, July 10

THE Chairman of the Enron Corporation, Mr Kenneth Lay, has expressed optimism over finding a solution to the Dabhol power project imbroglio, saying it was in the country's interest to revive it.

Mr Lay who met the Finance Minister, Mr Yashwant Sinha, on Tuesday said he was optimistic about a solution emerging soon, keeping in mind the interest of the country and investors.

Referring to his meeting with Mr Sinha, he said, ``We did not come to any conclusion. Much more work is required on both sides to review the project.''

Government officials declined to comment on what transpired between the two.

The Enron chief met the Union Power Minister, Mr Suresh Prabhu, on Monday.

Our Mumbai Bureau adds: The Maharashtra Chief Minister, Mr Vilasrao Deshmukh, today told the Enron Corporation Chief, Mr Kenneth Lay, that the State was willing to buy power from Phase I of Dabhol Power Company, but ruled out lifting Phase II power. He, however, said the power (Phase I) would be purchased only if the tariff was reduced.

Speaking to newspersons after a one-and-half hour-long meeting with Enron officials, Mr Deshmukh said he had categorically told the company that the State did not need Phase II power.

The Minister also put the onus of convincing the Centre on Enron. ``We told them (Enron) that even though we are trying, the company should also try convincing the Union Government that it must take the initiative to settle the matter amicably,'' the Min ister said. He added that the matter could not be solved without the Centre's active participation.

Mr Lay said the company ``would work as hard as we can to settle the disputes''. He said the State and the country needed DPC power. He insisted that DPC's tariff was competitive, would become cheaper once the plant switched to LNG.

A senior MSEB official said DPC had agreed to bring down the tariff by 10 per cent.