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Maharashtra unable to buy costly DPC power: Deshmukh

Maharashtra Chief Minister Vilasrao Deshmukh on Tuesday ruled out adverse impact on economic and political fronts due to ongoing controversy surrounding US energy major Enron and categorically expressed the state's inability to buy 'costly' power from the US energy giant-promoted Dabhol Power Company.

"Projects with an estimated foreign direct investment of Rs 450 billion are in various stages of implementation across the state," Deshmukh said when asked whether the FDI flow had depleted due to Enron imbroglio sending a wrong signal to foreign investors.

Deshmukh said Enron agreement stipulates that the state electricity board (MSEB) should purchase power from the former while in other deals the companies had to look out for their own market.

"This is the difference between Enron's agreement and deals with other companies. So there is no negative impact of Enron controversy on FDI," he pointed out.

Deshmukh, whose eight party Democratic Front government, completes two years in the office on October 18 in a free-wheeling interview to PTI, however, admitted the existence of divergent views over the issue between the Congress and NCP--the main partners of the ruling coalition.

When his attention was drawn to NCP's opposition to the institution of judicial probe into Enron deal, the chief minister said, "We are unanimous in our decisions on Enron at the government level but there might be differences at the party level."

"I am responsible for the decisions made by the cabinet. But the stance adopted at party level is a matter of individual perception," Deshmukh said.

Maharashtra is not in a position to buy power from DPC at the rate of Rs 7-8 per unit, he said adding, "the entire developmental works will have to be stalled, if we continue purchasing power at exorbitant rates from Enron."

"Neither the state electricity board nor the state government can afford Enron's power at the existing tariff", the chief minister stressed.

Asked whether the government's decision not to buy power from Enron has resulted in a shortfall of electricity in the state, which has resorted to frequent load shedding, Deshmukh replied, "the state will procure power from National Thermal Power Corporation."

"The per unit price has to be reduced through negotiations and the Centre and the US energy giant must take initiative in this regard," he emphasised when asked how to resolve Enron imbroglio.

Deshmukh clarified that institution of judicial probe into Enron was not a 'deliberate attempt' on the government's part to scrap the deal.

"There is no harm in asking for renegotiations since projections of electricity requirement and power tariff at the time of signing of deal might have been misplaced," he added.

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