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Enron looks to Centre for early end to row

Our Bureau

MUMBAI, July 11

THE Chairman of Enron Corporation, Mr Kenneth Lay, had little to say today on where matters were headed, even after the chain of meetings he had with Government officials, politicians and lenders to the Dabhol power project in the past couple of days.

After meeting the Shiv Sena chief, Mr Bal Thackeray, at his residence here on the last leg of his visit to India, Mr Lay told newspersons that he had ``productive'' discussions with Ministers and Government officials, both at the Centre and the State lev els.

``I met many people and the response has been positive. It is clear that Maharashtra and the country cannot do without Dabhol power,'' Mr Lay said. All parties ``want to settle the dispute quickly and amicably. In my discussions with the Chief Minister o f the State and other officials, it was felt that the Centre has to play a constructive role for the resolution of the problem'', he added.

The Enron chief also met the IDBI Chairman, Mr S.K. Chakrabarti, today morning. He said the discussion had been ``very positive''. ``IDBI is the largest lender to Dabhol Power Company (DPC). Everyone is keen to complete the project,'' he said.

``It is to be understood that it is not just Enron, but a host of other parties are involved with the project. There are about 40 banks, besides other contractors and co-promoters, GE and Bechtel. It is the single-largest foreign direct investor in India . This country needs the project and the power produced by DPC,'' he said.

To a question on whether the LNG facility would be bifurcated from the power project, Mr Lay said that any way it ``would not affect the economics of the project''.

Mr Lay, however, hinted that it could be a possibility and said LNG is very important for the country. He also stated that the ``key'' role in resolving the disputes has to be played by the Union Government.

About his meeting with Mr Thackeray, Mr Lay said the Shiv Sena chief has always had good ties with Enron. ``He offered several insights. He has been involved (with the project) when his party's Government was in power in the State,'' he said.

Mr Thackeray said that the issue should not be politicised. ``I would request all parties to keep off Enron. It should be solved amicably,'' he said.

``Enron will provide the power and we will provide them energy,'' Mr Thackeray added in a lighter vein.

In a statement issued in the evening by the company, Mr Lay was quoted as saying, ``I am pleased that there appears to be a sincere interest from a large number of parties in trying to find a resolution to this important issue.''

The concluding lines of his statement said: ``I did not want to leave the country this time without reaffirming my interest in, and support for India, and my strong belief that there is great potential in this country. I hope that we will be able to find a resolution to this problem that allows us all to move forward and realise that potential.''

Picture: The Chairman of Enron Corporation, Mr Kenneth Lay (left), and the Managing Director, Enron India, Mr Wade Cline, with the Shiv Sena Supremo, Mr Bal Thackeray, at a meeting in Mumbai on Wednesday.

Picture by Shashi Ashiwal