In view of the country's experience over the implementation of fast track projects, including the Dabhol project, the Centre has formulated a new policy under which it envisages sanctioning independent power projects (IPPs) in a state only after the concerned state government is willing to do so. Simultaneously, these projects would not be imposed on the state but would be sanctioned after taking into account the financial condition of the state and the respective state electricity board.

"If the promoters of IPPs are not acceptable to the financial institutions, then the government will in no way force the state to set up the project," Mr Prabhu said.

Over Enron's possible invoking of the Centre's counter guarantee for the power project, Mr Prabhu made it clear that the "agreement has been signed between Dabhol Power Company and MSEB, and if both parties want help then they can always approach us."