MUMBAI, Nov 2: Enron International announced today that it has sold a 30 per cent equity in Dabhol Power Company (DPC) to the Maharashtra State Electricity Board (MSEB) at an estimated cost of Rs 636 crore.The stake has been bought by MSEB's subsidiary, Maharashtra Power Development Corporation Ltd (MPDCL). With this, Enron International's equity interest in DPC now stands curtailed at 50 per cent. The other stakeholders are: Bechtel Enterprises and GE Capital at 10 per cent each.``We will achieve commercial operation for the first phase of the DPC in early 1999,'' said Enron International's President and Chief Executive Officer, Joseph W Sutton here today. DPC is completing the first phase of the Dabhol power plant, an 826-mw facility on the western coast of Maharashtra. Electricity produced will be sold to the MSEB under a 20-year power purchase agreement.``We are pleased that MSEB will not only be the sole buyer of electricity from the plant, but also an equity holder in the first independentpower project in the state of Maharashtra,'' he said. Financing of phase II of the project is progressing well and DPC expects to achieve financial close near year-end and commence construction in the acquisition of equity by MSEB was in accordance with a renegotiated agreement entered into between Enron and Shiv Sena-BJP government for revival of the project at Guhagar in Ratnagiri district.First quarter of next yearCompletion of the phase II would make DPC a 2,084 mw power generating facility. DPC was scrapped by the Sena-BJP government in mid 1995 soon after coming to power and on renegotiation, revived it on altered terms.Besides dilution of 30 per cent equity in favour of MSEB, the government had renegotiated the power purchase rate per unit at Rs 1.86 at the then prevailing US Dollar-rupee exchange rate.
