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Tatas may be interested in DPC, if Enron makes offer

Tata Power Company on Wednesday said it was ready to work out details of its possible buyout of US energy major's Enron's $3 billion power project, "if the multinational makes a formal offer to sell its stake to the house of Tatas."

"We have submitted our proposal to the Centre, now if Enron is interested they could approach us with a formal offer for sale of stake in DPC," a TPC official said in Bombay.

He said TPC despatched its letter to the government last week, but contrary to reports the Bombay-based power utility had not quoted any price tag in the communication.

He said the letter merely evinces TPC's interest in the project and did not contain any conditions that it was prepared to offtake power from the 2,184 MW project's phase II at around 80 per cent plant load factor.

"TPC has not provided any details in the proposal as we will be able to structure our offer only if the transaction proves beneficial for us and our shareholders," the official said.

On August 10, TPC chairman Ratan Tata has assured its shareholders that the power major would buy Enron's stake in DPC if it made sense for the company.

Managing director Adi Engineer had said TPC was "waiting in the wings" for a proper opportunity after which the company "will definitely look into buying Enron stake in DPC."

"DPC's asset is good. It is in fact a national asset, which cannot be wished away," Engineer said.

nron along with GE and Bechtel have offered a $1 billion price "at cost" for their stake in DPC.

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