"We have told Enron president Kenneth Lay that we will be studying certain aspects of the contract," Bhujbal told a meet-the-press programme on Monday.Lay, who was in the city two days ago, held talks with the state energy minister Padamsinh Patil.

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."

Meanwhile, Enron has appealed to the state government to take up its plea with the Centre for treating the 2,184mw Dabhol power project as a "mega project" and, thereby, offer import-duty concessions. Enron's plea was officially made by its chairman Kennith Lay at a meeting with Patil on Saturday. Enron's appeal to Patil assumes importance, especially when the Dabhol Power Company (DPC), a subsidiary of Enron and the Maharashtra State Electricity Board (MSEB), which has picked up a 30 per cent equity in the project, took up the issue with the Centre recently. According to the Centre's prescribed norms, a power project with a capacity of 1,500mw comes under the "mega project" category and is entitled for import-duty sops. Under the provisions, the power producer should supply power to more than one state.

Mantralaya sources told The Financial Express that if the Centre concedes the company's demand, the import duty of 22.5 per cent will be done away with.