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Enron to invest $1bn in Karnataka gas project 

Mini K Joseph  
Bangalore, Dec 2: Enron India is planning to supply gas to Karnataka by mid-2001 by installing a pipeline between Dabhol and the state, investing around $1 billion. A contract to this end was recently signed between the power major and the state government, according to Enron (South Asia) chairman and chief executive officer Sanjay Bhatnagar.

Briefing the media in Bangalore on Thursday, Bhatnagar said the gas bridge was expected to be in place in 18 months. Petronas would provide LNG for line, he said. However, details on the length, size of the bridge and number of locations covered would be worked out later depending on the demand, he said. Bhatnagar said, "We are in the process of identifying customers and gauging the demand.'' He said Karnataka was a major focus for Enron.

The second phase of the Dabhol project was under way at a cost of $1.8 billion and once the project was ready, its facilities would be extended to Karnataka. The company would be importing LNG for the project from Oman and Abu Dubai. The Dahbol project is expected to be ready by 2002.

He said there were a couple of proposals for naphtha, coal and gas-based power projects in the state. However, due to non availability of funds and the cost factor, all of them were delayed, he said. "The state has to make up its mind on its priorities instead of encouraging some select sectors alone," he said.

Power generation should be de-regulated in the country and import duty on power should be reduced on par with other countries to compete in the global markets, Bhatnagar felt. Currently, the import duty was in the range of 22 to 60 per cent.

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