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DPC revival in govt's interest: Enron chief

Enron Corporation on Tuesday said that the revival of its $2.9-billion Dabhol power project, which is embroiled in a payment controversy with Maharashtra State Electricity Board, is in the interest of the government and the country and it is optimistic about a solution.

"It is in the government's and the country's interest to revive the project," Enron Corporation chairman Kenneth Lay told newspersons after holding discussions with the Finance Minister Yashwant Sinha on the fate of the project.

Enron-promoted Dabhol Power Company and MSEB are locked in a payments dispute which provoked Enron to serve a preliminary termination notice to the utility, which in turn stopped buying power from 740-MW phase-I of Dabhol project.

MSEB, the sole buyer of Dabhol power, has defaulted on payments of $48 million to DPC complaining about high tariff.

"I am optimistic that a solution keeping in mind the interest of the country and investors would be found soon," he said.

Asked about the outcome of his meeting, Lay said: "We did not come to any conclusion and we did not expect to come to any conclusion. More work is required by us and the government to review the project."

The US energy giant, which hold 65 per cent interest in DPC, has stopped construction of the 1,444-MW second phase of the project after completing 85 per cent of the work, Lay said.

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