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Thursday, February 11, 1999

Enron set to tie-up funds for Dabhol phase II in a month 

Our Political Bureau  
Mumbai, Feb 10: Enron will achieve financial closure for the Dabhol power project's phase II (1,444 mw) in the next 30 days, said Enron Corp's vice chairman Rebecca Mark on Wednesday, shortly after her meeting with Maharashtra chief minister Narayan Rane.

Mark described press reports charging the company of human rights violations during the erection of Dabhol project as "most disappointing". The company has not indulged in such activities, she added.

Rane, who held a closed-door meeting with the visiting members of Enron at the Sahyadri guest house, was accompanied by energy secretary Satish Tripathi, Maharashtra State Electricity Board chairman Asoke Basak and the chief minister's secretary Johny Joseph. Deputy chief minsiter Gopinath Munde, who also holds charge of energy portfolio was conspicuous by his absence. Mark was accompanied by Enron Corp chairman Ken Lay and company directors Alison Wakeham, Dee Winokur and Frank Wisner.

While strongly defending the Enron case, Rane said that there weren'tany human rights violations. "I belong to the Konkan region and there are no such instances," he added.

The chief minister said that the company, which is conducting a trial run from the first phase of 740 mw, will commence commercial operation by the end of March (as per the power purchase agreement (PPA), commercial operation date is July 1999). MSEB chairman Asoke Basak said that the company could not commence the commercial operation in view of some problems in the functioning of turbines. The power plant is using state-of-the-art 9FA turbines from General Electric. The 9FA turbine is capable of producing 226.5 mw of power. Basak said that a technical problem has erupted at the level of the union government, in view of the change of fuel incorporated in the revised PPA. MSEB has already given the necessary clearance and sent the matter to the state government, which in turn has referred it to the Centre. Basak said that the Centre will clear the matter shortly and also give the confirmation on thevalidity of counter-guarantee for the first phase. This confirmation was sought by the lenders of Enron, he added.

Rane said that the company has promised to complete various social commitments made during the signing of the revised PPA. The company has assured ex-gratia payment to 144 unrecorded tenants, ex-gratia payment to fishermen, employment for local population, construction of schools, ITI, jetty and ice factory for fishermen.

However, Basak said that the company's progress on providing jobs to 200 project-affected persons and setting up of ITI was not satisfactory. The company has, however, promised to launch the functioning of the ITI from the next academic year. Applications have been received from 224 persons for jobs and from 87 persons for payment of Rs 1 lakh in lieu of job. DPC has offered jobs to 95 persons (28 landless and 67 marginal land holders).Out of these, 60 persons have joined and 8 persons have been paid Rs 1 lakh each in lieu of job as per their request. Cases of 108 personsare being processed.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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