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DPC's $1-billion offer too costly: MSEB

The Maharashtra State Electricity Board has termed the $1-billion offer for sale of US energy major Enron's 65 per cent stake in its troubled Dabhol Power Company as 'too costly' and also demanded a rupee-to-rupee parity instead of the US dollar denomination.

"Enron's offer is over-priced and too costly for a $3-billion equity pumped in several years ago. Reports of Enron India chief Wade Cline's offer has not made it clear how the company had arrived at the figure and whether these include the debts, gas contracts and other performance guarantees," official sources said.

When contacted, MSEB chairman Vinay Bansal said it would be premature to comment on DPC's offer.

According to sources the loss-making board is of a strong opinion that the Central power utility National Thermal Power Corporation should take over the project.

"The main issue is the cost of tariff, even if a new company picks up DPC's equity, will it be able to reduce the prices?" they asked.

"There are various aspects of the 2,184 power project which the DPC chief has not made it clear. What will be the fate of the $800-million liquefied natural gas terminal, for instance, is it included in the $1-billion offer, or otherwise?" they said.

Sources said that MSEB had no plans to pick up the stake and "was pleased with the fact that DPC had approached the Centre and not the state government".

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