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DPC issue solution most vital: Deshmukh

Parikshit Joshi in Mumbai

Asserting that resolving the controversy over Enron Corp's Dabhol Power project was the "most important achievement" of the Congress-led Democratic Front government in Maharashtra during its three-year rule, Chief Minister Vilasrao Deshmukh said "the present electricity shortage in the state" is the result of this dispute.

"We have almost solved the Enron controversy," Deshmukh told PTI in an interview over telephone from his hometown Latur on the eve of the ruling coalition completing three years in office.

The DF government is now negotiating with the IDBI-led consortium and finalising the offtake of electricity from DPC phase-I, he said.

About the present electricity shortage faced by the state, Deshmukh admitted that Maharashtra is facing power shortage to the tune of 2,000 MW during the peak period.

Virtually blaming the Enron controversy for the present electricity crisis in the state, Deshmukh said as the Enron issue remained unresolved, the government did not undertake any new power projects.

"Yes it is true that no new power generation project was undertaken nor permission to private generation plant was given," Deshmukh said.

Deshmukh reiterated his government's stand that the state would purchase power from only the first phase of DPC. "We are not in a position to procure electricity from the second phase of the project and have asked the Centre to look into the matter," he said.

The chief minister exuded confidence that the government would effectively tackle the energy crisis and tide over the situation within two-three months.

Maharashtra, he said, would seek more power from the National Thermal Power Corporation to bridge the gap between demand and supply, Deshmukh added.

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