Mumbai, Jan 7: The Maharashtra deputy chief minister Chhagan Bhujbal on Sunday strongly justified the state government's decision to set up an experts group to review and renegotiate the Dabhol phase-II. "Such an assessment is needed as the state cannot bear the additional burden of power purchased from Dabhol Power Company (DPC) at a high rate at the cost of its economy," he said.At the sidelines of the 'India Calling' conference organised by the Indian Merchants' Chamber (IMC), Mr Bhujbal said that state's decision would not impact domestic and foreign direct investments in Maharashtra which continues to be the "most favoured investment destination." He reiterated that the scrapping of Dabhol phase-II is the last option and said that there is nothing wrong in reviewing the project at this point of time, especially when the per unit cost of purchasing power has been quite high.
Mr Bhujbal, an arch rival of Shiv Sena chief Bal Thackeray, blamed the previous Shiv Sena-BJP government for the repudiation of Dabhol phase-I cleared by the Sharad Pawar government in 1993 and its subsequent revival after the inclusion of phase-II in the power purchase agreement (PPA). "The Shiv Sena government cleared Dabhol phase-II without even waiting to learn lessons from phase-I," he commented. Mr Bhujbal said that the experts group, which would be set up shortly, would weigh the possibilities of a reduction in the per unit cost by DPC.
Drawing a parallel between his decision to enquire into the alleged criminal nexus between the producer of Chori Chori Chupke Chupke and underworld dons, and the Dabhol review, Mr Bhujbal said that these moves would not send the wrong signals to investors as these have been initiated with a purpose to protect the interest of the state and its people. "The government cannot afford to see the state's economy damaged by the decision to continue purchasing power from DPC at a higher cost. Neither can it be a silent spectator to the underworld spreading its tentacles in Bollywood," he noted.
Earlier, Mr Bhujbal and state industries minister Patangrao Kadam in their speeches at the conference announced that the government would soon announce a comprehensive industrial policy in a serious bid to attract more investments. Mr Bhujbal and Mr Kadam said that the state government had decided to reform the outdated labour laws which would not only protect the interests of labour but also make the investment process hassle free.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
