Will DPC back out from talks?

By Mahesh Vijapurkar

MUMBAI, JULY 12. Though, the Maharashtra Chief Minister, Mr. Vilasrao Deshmukh, was cornered by his partners in the Government, including the Nationalist Congress Party (NCP) into announcing an intent to ``probe Enron'' through a judicial commission, its potential implications have just begun to sink in. Analysts say the Advocate-General, Mr. Goolam Vahanavati's fears may not be unfounded but vindication would come only when the ``soap opera'' emerges slowly.

The Dabhol Power Company (DPC) said, ``this was an unfortunate reflection of the difficulties in making progress in India'' and the probe plans emerged after the DPC ``has been the most investigated'' power projects in India or in the world. That the announcement came on the same day when two positive things happened : the Enron Corporation Chief, Mr. Kenneth Lay's indication that the 5 mtpa LNG gasification plan could be hived- off from the DPC and the Centre set up a coordination committee to deal with the project and its problems.

Would the DPC now back out from talks, on the plea that it was being once again targeted even after it was willing to sort out the problems? Those familiar with the working of the Government, fear that the DPC would now point out that its notice of political force majeureissued in the beginning when the Godbole Committee was launched that its fears were well founded and it stands vindicated now. An official said: ``The DPC may well walk- off now.''

The demand for a judicial probe, would be side-stepped by pointing out to the left-of-centre parties, that it would prejudice several legal steps taken. But, the earlier announcement by the NCP, often adversely cited for its support of renegotiation and not a probe by other parties, including its own allies that it would indeed want a probe so that it was not put in the wrong box as a votary of Enron, boomeranged.

For long, none of the major parties wanted an inquiry such as the one proposed and wanted the focus to remain on resolution of the issue through negotiations. Even in the Godbole Committee, the minority view favoured a probe but the majority pointed out the futility since people involved were no more on the centre-stage and that it was time-consuming.

Apparently, the left-of-centre parties had not reckoned with the possible fallout of the probe plan found that they had no room to manoeuvre themselves out of it. The Congress, which never made its mind known, had to act or emerge as the only party which did not want a probe. It is feared the issue may move from the legal and commercial domain into a political drama.

Sonia backs decision

Our Special Correspondent reports:

Mr. Vilasrao Deshmukh's decision on the probe has the approval of the Congress president, Ms. Sonia Gandhi, said the party general secretary, Mr. Motilal Vora. He told a press conference that the party shared the perception of the State Government on the issue. He was responding to a question about Ms. Gandhi's reported statement in the United States that the interests of Enron should be safeguarded.

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