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Govt to help Enron patch up with MSEB

The central government will help Enron Corp and Maharashtra resolve their wrangle over the US energy giant's troubled $2.9-billion power project, an official statement said on Thursday.

Dabhol Power Co, 65 per cent owned by Enron, and the Maharashtra State Electricity Board have been embroiled in a dispute over payments for six months.

The dispute provoked the Houston-based Enron Corp to issue a preliminary notice last week to terminate its contract to sell power to the utility.

"The government of India will assist in the implementation of any agreed proposals, which have the support of the concerned parties," the statement said.

The Union government has nominated a representative in the state's panel negotiating with Enron.

Another committee of senior officials has been set up in New Delhi to assess the outcome of the negotiations, the statement said.

"Minister of State for Power Suresh Prabhu has confirmed that the government of India is ready to consider any worthwhile idea emerging out of the negotiating committee for the settlement of the dispute."

The statement said the Union government wanted the state to resolve the dispute.

"The government of India is of the view that a quick settlement of the dispute is essential for the power sector of Maharashtra."

The 2,184-MW power project was regarded as a test case of India's plans to encourage private investment in the power sector.

The first phase of 740 MW of the project is up and running, while the second phase of 1,444 MW is slated to be completed next month.

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