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July 30, 2001
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Money > Business Headlines > Report July 30, 2001 |
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Cloud over Godbole-DPC parleysS Ravindran The statement by Enron chairman Kenneth Lay that the company wants to exit the controversial Dabhol power project in Maharashtra has virtually put a spanner in the negotiations between the Godbole committee and the Dabhol Power Company. The next round of negotiations may not take place at all. Lay had said in an interview from London to Financial Times published on Friday. "We want out. We have made it pretty clear to the government leadership that we are now at a point where we would like to be taken out and we think most of our partners do." "The dominant view in the Godbole committee is that it is impossible to find a solution with DPC through negotiations and the next meeting between the two sides slated for end-August may not happen at all," said sources in the Godbole panel who spoke on condition of anonymity. Two reasons are being are cited for this. Firstly, they feel that if Enron wants to exit the project. There is little that can be achieved through negotiations. Secondly, they say that the chasm between the two sides is very difficult top bridge. "Several states which are keen on buying the power which DPC seeks to sell from the second phase have said that they will buy power between Rs 1.65 per unit to Rs 2.60 per unit. This DPC feels is unrealistic," sources added. DPC itself seems to have veered round to the point of view that little is to be gained by negotiations. The company had just stopped short of telling the Godbole panel on Friday, that it wanted to quit the negotiations. On Saturday, the company went public with its grievances. It has said in a press release that the best possible solution to the problem would be for either the central government or the lenders to take over the project. The company has also said in its release that while it remains open to discussing viable solutions it is keen on not getting embroiled in a perpetual series of renegotiations. It has also made it clear that no realistic proposal has been offered. YOU MAY ALSO WANT TO READ:
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