``Enron should go in for the reduction in Dabhol tariff through cut in the rate of return and, thereby, decline in the variable charges,'' Dr Patil said.

In an interview with The Financial Express after the conclusion of the winter session of the legislature, Dr Patil said Enron should consider the present tariff rate and give relief to both the Maharashtra State Electricity Board (MSEB) and to the consumers. Dr Patil's statement deserves significance as the Indian financial institutions have reduced interest rate from 21.5 per cent to 16.5 per cent on the Indian rupee loan component of Dabhol Power Company (DPC).

The state government is of the view that the cut in interest rate would help reduce tariff. In addition to this, if Enron, which holds 50 per cent stake in DPC in phase-I (740 mw), decides to reduce rate of return to below 22 per cent, it will lead to fall in variable charges and tariff.

``The decision will have to be taken ultimately by the DPC,'' Dr Patil said and hoped that a favourable response from the company. At present, the MSEB, which is reeling under severe financial crisis, has restricted its power purchase from the DPC below 90 per cent to ``manage'' its power purchase bills. The MSEB is paying fixed charge of nearly Rs 95 crore per month and avoiding variable charges by not purchasing power at 90 per cent capacity as per the consolidated power purchase agreement with the DPC.

Dr Patil said he had sought the Centre's intervention for the purchase of Dabhol power and incorporate it in the national pool. However, he added the Centre was yet to convey its decision.

Dr Patil said a special Act with a provision of registration of cognizable offence would be ready soon to curb power thefts.

``The government is serious on this issue and I strongly feel that the provisions of the proposed Act will prove to be a deterrent in containing power thefts and thereby reduce the transmission and distribution losses,'' he opined. The MSEB had come under attack from the MERC for 31.87 per cent transmission and distribution losses of which 21.2 per cent are technical and 10.67 per cent commercial. The commercial losses are mainly due to faulty meters, thefts or pilferages due to unauthorised tapping and wilful tampering.

Govt has no objection to third-party sale
Union power minister Jayavantiben Mehta said the Centre will not have any objection if the Maharashtra government approves third-party sale by the Dabhol Power Company (DPC). She, however, made it clear that ``let Maharashtra government without politicising the issue, take a decision first, the Centre will extend its support.'' On the issue of purchase of Dabhol power by central agencies such as the NTPC or the PTC, Ms Mehta said the state government was yet to send a formal communication to the Centre in this regard.

She admitted that the state energy minister Padmasinh Patil had personally appealed to the union power minister Suresh Prabhu in this regard. She said various experts have pointed out that the Dabhol tariff will reduce after the completion of phase-II with LNG as fuel.