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This is an archive article published on December 7, 1999
Govt to study Enron deal– Bhujbal
MUMBAI, DEC 6: The State Government has formally communicated to the US-based energy major Enron International that it was in the process ...
Written by Press Trust Of India
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MUMBAI, DEC 6: The State Government has formally communicated to the US-based energy major Enron International that it was in the process of examining certain aspects’ of the power purchase agreement (PPA) signed for its Dabhol Power Project (DPP).
“We have told Enron President Kenneth Lay that we will be studying certain aspects of the contract,” Bhujbal informed reporters on Monday.
Lay, who was in the metropolis two days ago held talks with the State Energy Minister Padamsinh Patil.
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The officials have been asked to study as to why the contract of Phase I was cancelled, why the new agreement was signed, the difference in electricity tariff between the contracts signed for Phase I and Phase II and why the State Government should purchase power from Enron at a higher price and the cost of state electricity power centres, Bhujbal said.
Bhujbal, however, clarified, “The ongoing work at Dabhol Power Project will not be stopped but at the same time we have the authority to take action if something is found in our study.”
