New Delhi, July 13: When SN Eisenberg first visited the country in 1993, it was hardly surprising he stopped and stared. Held as one of the richest men in the world, Eisenberg reportedly flew around the country, bureaucrats in tow, looking for suitable sites to set up mega power projects.

The Israeli business tycoon, by the time he concluded his four-day trip, had drawn up a master plan to invest Rs 20,000 crore in power projects. A first-of-its-kind 4000MW pithead complex in the coal-rich Ib Valley of Orissa, which would ferry electricity through high-voltage direct current (HDVC) lines to the deficit southern states, and a 1000MW station in Yamunanagar, Haryana, were deemed to be set up.

But four years down the line, he has given up on the Ib Valley complex, daunted by the task of signing separate power purchase agreements with as many as five state governments. A few months ago, Haryana State Electricity Board (HSEB) terminated his deal to construct the Yamunanagar station. He has a filed a suit against the HSEB in the Delhi high court for a breach of contract. Eisenberg reportedly his millions, peddling Israeli arms to China.

Eisenberg went on to build railroads in Thailand, chemical factories in Malaysia, power stations in Latin America, refineries and fertiliser plants in Indonesia. Today, he commands a business empire that has 60 companies strewn around the globe. The rags-to-riches story is not without its share of controversy. Eisenberg has been under investigation by US senate sub-committee for its arms deals with China. Reports have it that even the union home ministry opened a file on him and kept track of his activities here.

But the man, who successfully figured out how Chinese bureaucracy works, is apparently stumped by the politics of Bansi Lal and the regulations of Central Electricity Authority (CEA) and the Indian Electricity Act. The earthy Jat chief minister from the Haryana Vikas Manch has turned out to be a tough customer in comparison with his predecessor - Bhajan Lal - whom Eisenberg had wooed in earnest.

The tycoon failed to extract a counter-guarantee commitment from the union finance ministry. The size of the Yamunanagar project was scaled down to 700 MW, the deadlock over tariffs and project cost took months to settle and, more important, the deal with Coal India for long-term fuel supply could not be clinched.

Eisenberg's licence for the Yamunanagar project was terminated ostensibly for not submitting the detailed project report (DPR) on time. But his executives claim that the report was held up because environment clearances had expired and a fresh study took time to complete. In fact, HSEB was supposed to get all the clearances for which The Israelis had to foot the bill. It is alleged that the board was in a tearing hurry to scrap the deal and float global tenders for new consultants.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.