Business
Enron severs 200 employees in India
By Our Special Correspondent
MUMBAI DEC. 6.Enron-promoted Dabhol Power Company (DPC) is terminating the services of around 200 employees in India by the end of this week.
In addition, Enron India Pvt. Ltd. (EIPL) will also be severing all of its remaining employees in India, many of whom were working on the Dabhol project. EIPL will engage a few former employees on a contract basis to assist in wrapping up its operations in India.
A press release issued here today by DPC stated, "We regret that DPC will be severing this week all of its remaining employees in India, including those based at the Dabhol plant site. A small core team will be engaged on a contract basis to undertake certain essential activities related to site security, pursuing legal claims and asset preservation, subject to adequate funding being received.''
This is the third time this year that DPC has reduced its staff. Initially, it had employed over 500 executives and 15,000 skilled and semi-skilled workers. Globally, this week, Enron Corp. has sacked 1,100 and 4,500 employees in Europe and the U.S.
However, talking to The Hindu, a DPC spokesperson said the termination of employees in DPC was not connected to the filing of bankruptcy by Enron Corp. in the U.S.
"DPC was compelled to take this step due to continuing defaults by the Maharashtra State Electricity Board (MSEB), the Government of Maharashtra and the Government of India, and non-disbursement by lenders, which were responsible for DPC having insufficient funds for staffing purposes,'' DPC spokesperson blamed.
Last Monday Enron stated that DPC functions independently of Enron Corp. "DPC is an Indian company with a separate legal entity in which Enron is one of four independent shareholders from India and the US. Therefore, DPC functions independently of Enron Corp.'' The company also stated that it is now reviewing the project to determine how to proceed further to resolve the dispute.
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