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Enron, Godbole panel to meet on May 23

The Indian unit of Enron Corp and an Indian government panel will meet again on May 23 to continue talks on the US energy giant's embattled $2.9 billion Dabhol Power Project.

"We discussed issues for two hours and have agreed to meet again on May 23 to discuss them further," said Vinay Mohanlal, energy secretary of the government of Mahrashtra, where Dabhol is located.

The renegotiation committee, headed by former bureaucrat Madhav Godbole, held a meeting lasting over two hours on Friday with Enron-promoted Dabhol Power Company officials to renegotiate the power purchase agreement and agreed to meet again on May 23.

Soon after the meeting, Enron India managing director K Wade Cline told waiting reporters that 'discussions with the panel went on fine'.

Asked if pre-termination notice was being issued, Wade said: "No comments."

Wade was accompanied by DPC president Neil McGregor and vice-presidents Sanjeev Khandekar and Mukesh Tyagi.

Lal said that DPC lenders were not present at the meeting, but had nominated an observer, A G Karkhanis, a former executive director of Industrial Development Bank of India.

Asked if DPC was ready for renegotiations, Lal said: "The very fact that we are meeting again means a lot."

The Centre's representative A V Gokak could not attend the meeting as he had been given very short notice about his appointment, Lal said.

HDFC chairman Deepak Parekh, former Energy Secretary E A S Sarma, Indira Gandhi Research Institute director Kirit Parekh were not present at the first meeting with the DPC officials.

Dabhol officials on Friday met a special committee appointed by the Indian government to renegotiate the Dabhol project which has been mired in controversy over high costs and payment defaults.

With inputs from PTI

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