BOMBAY: Ignoring protests by the Swedish Jagran Manch and also a section of its own senior ministers, the Sena BJP government is likely to ‘accept the suggestion of the high-level committee, headed by the Energy Secretary, Ashok Basak, to revive the controversial Enron power project, albeit at a lower capital cost and revised conditions, leading to a lower tariff to be charged for the power. Though Chief Minister Manohar Joshi had declared that government will take a decision by December 10, a senior official said a decision in favor of Enron is expected this week. Officially, Enron declined comment, but it has already signaled its broad acceptance by agreeing to adjourn the ongoing arbitration proceedings in London till December 10.
Meanwhile, a senior State Minister said once the Cabinet accepted the decision of its subcommittee to scrap the Rs 9000 crore project, it was improper to review the project afresh and award the contract to the same company. “It is betrayal of the electorate,” the minister said.
Mr. Thackeray’s main emphasis was on reduction in capital cost, power rates and more effective pollution control measures, The committee accordingly has recommended several major changes, including reducing the capital cost by $330 million by giving off the regasification plant as a separate unit, reducing the leveled tariff from Rs 2.40 per unit 10 Rs 1.90 and finally, by linking Phase I and Phase IL of the project for negotiations.
Article extracted from this publication >> December 1, 1995
