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DPC posts Rs 2.08 bn net profit for 2000-01

Notwithstanding its depleting financial conditions, the Enron-promoted Dabhol Power Company, has recorded a higher net profit of Rs 2.08 billion for the year 2000-01, compared with Rs 1.98 billion in the previous year.

Disclosing this at the annual general meeting in Bombay, the Enron India chief, Wade Cline, said that the promoters of DPC would be making efforts to fetch additional finances from the institutions to complete the remaining 10 per cent construction work of the 2184-mw power project at Guhaghar in Ratnagiri district of Maharashtra.

DPC is a fast-track joint venture power producing company with major shareholding (65 per cent) being held by US energy major, Enron Corporation, followed by 15 per cent by the Maharashtra State Electricity Board. The remaining 20 per cent equity are being held equally by General Electric and Bechtel of the US.

The company, which is setting up a multi-fuel based two-phase first general power plant in Maharashtra, at an estimated investment of $3 billion, is currently embroiled in litigation over the power purchase agreement with its sole consumer MSEB, also a shareholder.

There is no production of power from the plant as MSEB stopped making payment and got defaulted in honouring the contractual obligations with partner Enron Corporation.

Since April this year, MSEB has an accumulated payment outstanding of around Rs 4 billion to DPC.

UNI

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