Talks on to solve Enron tangle

By Our Special Correspondent

NEW DELHI, SEPT. 26. Some serious behind-the-scene negotiations are on at the level of the Central Government to resolve the Enron tangle involving the Maharashtra State Electricity Board (MSEB) and the Enron-promoted Dabhol Power Company (DPC). A team of secretaries from the Ministries of Finance, Power, Law and Petroleum with the occasional inclusion of the Chief Secretary of Maharashtra, has been meeting frequently to explore ways to salvage project and to safeguard India's image as a favoured investment destination.

The core group has had a series of meetings not only with the two parties but also with financial institutions and other interested parties who might consider taking over the power project. However, top sources in the Power Ministry declined to give any details at this juncture, saying it would jeopardise the negotiations.

The Ministry has, however, not taken kindly to the letter by the Enron Corporation chairman, Mr. Kenneth Lay, to the Prime Minister, Mr. Atal Behari Vajpayee, in which he has been critical of the Central and State Governments. ``Writing letters will not resolve the problem. If that were the case, the Indian Government too has much to say on the issue, but it would only complicate matters,'' sources in the Power Ministry said here today.

The Centre was playing the role of a facilitator and would soon find a solution to the problem as soon as possible, the sources said.

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