BSES watching Enron developments: Shahi

Our Corporate Bureau

Mumbai, Dec 1: The Mumbai-based power utility major BSES Ltd, which is one of the bidders for picking up Enron’s equity in the distressed Dabhol project, has launched the evaluation of legal and technical repercussions of the crash of Enron empire in the United States after the successive fall in its stock prices and termination of acquisition deal by Dynegy Inc.

BSES chairman and managing director RV Shahi said on the sidelines of seminar on “power trading” organised jointly by the Independent Power Producers Association of India and All India Association of Industries that the company was closely watching the developments on the Enron front which were in a state of flux and without any clarity.

He said that the decisions related to picking up Enron’s stakes would be taken only after taking into account what action the Indian lenders take.

“We are evaluating the current position and the impact on Dabhol Power Company if Enron Corp files for bankruptcy under chapter 11 of the US laws,” Mr Shahi said that much would be depend on the response from the Indian financial institutions (FIs) led by Industrial Development Bank of India (IDBI).

Mr Shahi said that his company has already submitted its comments on the draft confidentiality agreement to DPC for carrying out due diligence.

He said the company has suggested various options for restructuring of the distressed project.

Meanwhile, IDBI on Saturday reiterated its stand that it would provide finances to the problem ridden power sector in view of slow pace of progress.

The IDBI executive director RS Agarwal said that the FIs have funded a whopping Rs 42,000 crore to 58 independent power projects (IPP) since the opening up of the sector in 1992 with.