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Centre not to intervene in removal of equipment by Enron

The government said on Friday that it will not 'intervene' in the controversy over bankrupt energy trader Enron removing components needed to restart its idle $3 billion power plant at Dabhol in Maharashtra.

"Centre doesn't monitor power plant equipments and their functioning. It is a local matter between the stakeholders of Dabhol Power Company and the government has no intention to intervene at this point of time," a senior power ministry official said in New Delhi.

Enron on Friday said it had removed critical components from the 2,184 MW power plant to prevent damage.

The ministry official said Enron had neither informed the Centre nor Industrial Development Bank of India and other lenders that had lent $1.4 billion to the failed project, about the removal of components.

"The parts were removed without their (lenders) knowledge even though the plant is mortgaged to them, making it hard to sell the power station to recover part of their loans," the official said adding IDBI has asked for an explanation.

Enron, in its reply to IDBI, said components, which included coded compact discs and microchips, were removed for security reasons so that they could be used again when the power plant is sold. It couldn't inform lenders about the removal in time because of year-end holidays, the reply said.

The components are being stored outside India and would be returned once a sale is completed, the official said quoting from the reply filed by Enron.

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