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Enron crisis causes uncertainty over Dabhol settlement

The government said on Thursday that the reports of Houston-based energy giant Enron, being on the brink of bankrupcy, have created uncertainties over resolution of the Dabhol crisis.

"It has certainly created uncertainties," Finance Minister Yashwant Sinha said when asked about the reports of Dynergy pilling out from merger talks with Enron, triggering the biggest corporate collapse in US history.

Sinha said Indian financial institutions were in the process of discussing a package to ease Enron out of the $2.9 billion Dabhol power project.

"They are in the process of discussing this issue. That's all I can say at this point of time," he said, adding, "I am hopeful it will be possible for them to find a solution to the issue soon."

Enron, which has 65 per cent stake in Dabhol Power Company, has expressed the desire to exit from the 2,184 MW project following a bitter row with Maharashtra State Electricity Board over payment of dues.

To a question, Sinha said no time-frame has been given to FIs for finding a solution.

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