Godbole panel submits report

By Our Special Correspondent

MUMBAI, SEPT. 26. The Godbole Committee - appointed by Maharashtra to negotiate power tariff rates with Enron - has made sweeping recommendations with a view to bring down the rate to Rs. 2.25-2.40 per unit.

Since the Centre's counter-guarantee liability for the project is Rs. 2500 crores, New Delhi should raise the same amount by issuing bonds and lend it to the Maharashtra Government as an interest-free loan, the Committee has recommended.

The project should be exempted from paying custom duty on the import of the LNG and the machinery for handling the LNG and if Dabhol Power Corporation is not entitled to income tax concessions for 10 years, the facility should be extended to it.

The Committee wants the shareholders to forgo 75 per cent value of their investment in the project and rescheduling of Dabhol's loans. Besides, efforts should be made to find an alternate investor to replace Enron.

Other recommendations include the separation of the fuel facility from the project, renegotiation of fuel supply and shipping and restructuring of the tariff.

The Maharashtra Chief Minister, Mr. Vilasrao Deshmukh, told reporters that the State Cabinet had taken note of the recommendations in its meeting today.

The Committee has stated that it was not necessary to negotiate with Enron since the power major had expressed a desire to quit the project. The Committee spoke to representatives of the electricity boards of Karnataka, Madhya Pradesh, Delhi, Rajasthan and Haryana to explore the possibility of selling the excess power to them, but found that these States could buy electricity to some extent if the tariff was brought down to Rs. 2.25-2.40. The power needs of these States is temporary.

Send this article to Friends by E-Mail

Section  : National
Previous : Talks on to solve Enron tangle
Next     : 10 scientists chosen for Bhatnagar awards