What is more surprising is that the MSEB has been made to commit itself to purchase power from Enron at the rate of Rs 3 per unit when the State is, in fact, facing no serious power shortage at all, representatives of industry and business stated at a joint press conference.

The Enron power tariff is more than double than that of the MSEB's current generation cost. As a result, the power tariff in the State would zoom to a new high and not many would be able to afford the same. Then the State would definitely enter lantern days not because it does not have enough power, but because people will not be able to afford it, they warned.

Warning about a dark future, theyforcefully demanded that the State must call off the second phase of the Enron project and at the same time review the capital of the Enron's first phase.

They reeled out statistics in support of their claim that the MSEB would be suffering heavy losses. The MSEB is slated to power from Enron's first phase of 826 MW at the rate of Rs 3 per unit, which is higher by Rs 1.65 per unit. This would mean a loss of Rs 1,000 crore per annum. After implementation of the second phase, Enron's capacity would go upto 2450 MW and the total losses would then mount to Rs 2,500 crore per annum. In two decades, the losses would reach a whopping figure of Rs 50,000 crore.

They also quoted the MSEB chairman and referred to the National Thermal Power Corporation (NTPC's) project cost and said the State could do well without the Enron project.

They also suggested steps to improve MSEB's performance saying that there is every scope to do it without much difficulty. MSEB has the installed capacity of 12,338 MW while the peakload demand is around only 9,500 MW. MSEB's plant load factor (PLF) could be improved by supplying better quality coal to generate more power. In addition, transmission losses could be reduced from 17.5 per cent to 12.5 per cent, they felt.

Noting the disastrous consequences of the agreement with Enron, the industrialists said MSEB's PLF, which is around 73 per cent is bound to come down drastically as it would be forced to back down its cheaper generating units because it has committed itself to purchase power from Enron at 90 per cent PLF. In such an eventuality, the trade and industry will have a bleak future, they feared.

The disastrous effects of the Enron agreement would not be limited to the steep hike in power tariff in the State. The MSEB would then resort to collection of additional security deposit. It will not be in a position to give deferment of instalment for payment to consumers. There is also every possibility of MSEB introducing minimum energy charges concept. Creation of captive powerunits would be discouraged. The stores purchase of MSEB will come down and the payment to suppliers would be further delayed.

The industry and trade representatives also came out with remedial measures. They felt it was high time the State Government took stock of the situation and initiated concrete measures to improve MSEB's performance. They felt that there was an urgent need to induct professional management by appointing an expert from NTPC or any such organisation as MSEB chairman.

The need is to call off Enron's second phase and review the capital of its first phase by appointing a crack team consisting of MSEB officials and experts from NTPC.