Israel's Eisenberg opts out of Haryana power project
Santanu Saikia
NEW DELHI, January 4: Controversial Israeli tycoon `Carl' Eisenberg has finally decided to quit as promoter of the Rs 3000 crore, 700 MW Yamunanagar power project in Haryana.Eisenberg has dumped the power purchase agreement (PPA) that it had signed with the Haryana State Electricity Board (HSEB). Last month, he withdrew the case he filed in the Delhi High Court against the HSEB for infringement of contractual obligations when the differences between the two reached a flash point and hopes of a settlement faded quickly. Eisenberg has quit because the price of hanging on, in terms of cost of litigation and manpower, was turning out to be too high, sources claim. He, however, is keeping the option open of suing HSEB for damages. Eisenberg's initial plans were to set up a 1000 MW unit but the project was subsequently scaled down to two units of 350 MW each. He had also obtained techno-economic clearances from the Central Electricity Authority (CEA) but the project hit roadblocks when there was a change of
government in Haryana. The HSEB subsequently contested the underlying assumption behind the pricing of power and wanted Eisenberg to bring down tariff rates. But negotiations fell through and the Haryana government decided to float a fresh international tenders for shortlisting technical and financial consultants for the project, forcing the Israeli businessman to go to court. The curtains have finally come down on what was an ambitious foray into the country's power sector by one of the world's richest men. Eisenberg drew attention when he flew into the country four years ago in his private Boeing 737 and conducted negotiations on board with wide-eyed Shram Shakti Bhavan mandarins while criss-crossing the country looking for suitable project sites. Initially, he had zeroed in on a 4000 MW mega station in the coal rich Ib Valley in Orissa at a cost of a staggering Rs 16,000 crore. The idea was to have a power station next to the coal fields from where electricity is to be ferried through High Voltage
Direct Current (HVDC) transmission lines to Southern states. The difficulties involved in transmitting powers across state borders and the gigantic task of working out individual power purchase agreements with different state electricity boards forced Eisenberg to abandon the ambitious plan. Instead, the power ministry offered him the 1000 MW Yamunanagar station which was earlier supposed to have been promoted by the National Thermal Power Corporation.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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