NEW DELHI, June 26: Maharashtra has constituted a joint working group with the US multinational Enron Power Corporation to finalise tariff issues, fuel management agreement and other norms for the phase-II of the Dabhol power project. Top official sources told The Financial Express that a decision to this effect was taken at a meeting held last week between the chief executive officer (CEO) of Enron International Rebecca Mark and Maharashtra deputy chief minister Gopinath Munde.The joint working group consists of officials from Enron Corporation and the Maharashtra State Electricity Board (MSEB). The decision to go ahead with the preparations for phase-II and finalise the nitty-gritties comes at a time when India is facing sanctions. Enron has reassured its investment commitment in the country and will pursue phase-II as per schedule.
This is despite the fact that the US Exim Bank loan guarantees will not be available for Enron in phase II. This is owing to the fact that sanctions do not allow thebank to back up any project being taken up in India in the aftermath of nuclear tests conducted at Pokhran.
Even amidst the sanctions imposed by the US government, Enron is confident of achieving financial closure for phase-II of the Dabhol power project by the end of this year. How Enron will achieve this is still to be seen. Unlike phase-I, for which Enron got a loan of $298 million from the US Exim Bank, it will not get any help from the bank for its phase-II. This is despite the fact that 70 per cent of the borrowings for the phase-II will be made from the overseas markets. Majority of the funds will come from European and other foreign markets excluding the US. æ
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
