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June 6, 2001
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Deshmukh seeks Centre's intervention in Enron imbroglio

Though Prime Minister Atal Bihari Vajpayee has expressed confidence that Maharashtra government and the US energy giant Enron were capable of resolving the ongoing imbroglio over purchase of power, the state government would pursue its demand for the Centre's intervention in the matter, chief minister Vilasrao Deshmukh said on Wednesday.

"We will continue with our demand for Centre's intervention to sort out the matter," Deshmukh told reporters when his attention was drawn to Vajpayee's statement that the state government and the energy multinational would resolve the issue.

Deshmukh reiterated that the state was not in a position to purchase power from phase-II of the Enron-promoted Dabhol Power Company's project. "Purchasing electricity from phase-II is out of the question," he emphasised.

The CM said the controversy surrounding Enron would not affect the inflow of foreign investment to the state.

On the demand that Enron should make public all documents concerning the power purchase agreement, Deshmukh said, "the state government will seek legal opinion on under what act the company is refusing to make the documents public."

The Enron review committee headed by Madhav Godbole had suggested making public all documents and the view has been backed by the constituents of the ruling democratic front coalition in the state.

"The government has already accepted the Godbole committee report," Deshmukh said.

Deshmukh, however, refused to comment on the NCP president Sharad Pawar's statement that he would seek a public explanation from those paying any compensation to Enron in case the DPC's project was scrapped.

Asked whether there were any differences among Congress and NCP--the main partners of the ruling DF--over the Enron issue, the chief minister said the DF co-ordination committee would take them up if there were any.

The next meeting of the coordination committee would be held after the arrival of the deputy chief minister Chhagan Bhujbal from abroad, he added.

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The Enron Saga

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