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Enron chief set to discuss DPC with Indian officials

Enron Corp Chairman Kenneth Lay is due to meet the Indian power minister and senior power ministry officials later on Monday to discuss a dispute between the US firm's Indian unit and a local utility, officials said.

The firm's Dabhol Power Co and the Maharashtra State Electricity Board are locked in a payments dispute which provoked Enron to serve a preliminary termination notice to the utility, which in turn stopped buying power from Dabhol.

"He is scheduled to meet Power Minister Suresh Prabhu at 5:25 pm," a power ministry official said.

Lay was expected to discuss the future of the troubled Dabhol project, said the official who did not want to be identified.

He said Lay would also meet senior officials in the federal power ministry before visiting Prabhu.

MSEB, the sole buyer of Dabhol power, has defaulted on payments of $48 million to Dabhol.

Enron's project is the largest direct foreign investment in India. Its first phase of 740 MW was completed in 1998, while a second phase adding another 1,444 MW was almost complete when its contractor stopped work because of the dispute.

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