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Thursday, June 07, 2001   
 
 
Vajpayee says state, Enron should resolve Dabhol crisis themselves

Our Political Bureau

Mumbai, June 6: PRIME Minister Atal Behari Vajpayee on Wednesday passed on the buck to the Maharashtra state government and Enron to find a way out to resolve the Dabhol impasse.

Hoping that both the parties will solve the imbroglio mainly concerning the disposal of costly power, he said the steps initiated by the state government and the Dabhol Power Company (DPC) are in the right direction of resolving the issue.

Addressing a press conference immediately after his arrival at the Mumbai airport, Mr Vajpayee shared the state government’s sentiments on the purchase of the “costly” Dabhol power. The prime minister admitted that there are difficulties in finding a solution to the Enron issue, but he was confident that it would ultimately be found. By putting the ball in the court of the state government and DPC, the prime minister has made it amply clear that the Centre would not like to associate itself directly to either purchase Dabhol power or its despatch to various states until tariff is reduced after renegotiation. Mr Vajpayee’s remarks have come as a major setback to the state government as it has been appealing to him for the takeover of the Dabhol phase-II in view of its inability to bear the mounting burden.

Chief Minister Vilasrao Deshmukh, in his recent communication to Vajpayee on February 6, April 17 and May 10, repeatedly demanded that Dabhol’s surplus power be disposed by national organisations such as the NTPC and the Power Trading Corporation in power deficit states. “The negotiations with DPC with a view to reducing the tariff hinge around the question whether the entire power from this project at 90 per cent PLF would be purchased. DPC may be willing to reduce tariff from the existing high levels, provided they get such an assurance from the government of India,” Mr Deshmukh had said.

 
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