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Future US investment threatened by Enron saga

The ongoing imbroglio concerning US power company Enron and Maharashtra State Electricity Board has created a negative image for the country in the minds of American investors, the senior commercial counsellor in India, Samuel H Kidder, said on Tuesday.

The US official told reporters in Calcutta that with the onset of the Enron controversy, it would now be difficult to bring US investments in the Indian infrastructure sector.

"Unless some success stories are quickly seen, it is unlikely that US investments would be forthcoming in the power or any other sector," Kidder said.

When asked whether there would be any impact on future US foreign direct investment flows into the country, Kidder said investments in the IT and services sector would not be affected.

In the last year, the quantum of US investment flow into the country had been $5.2 billion. In the current year, it is expected to be at the same level, Kidder said.

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