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Salve may represent Centre on Enron talks panel

Solicitor general Harish Salve is likely to be named the Centre's representative on the high-power committee appointed by the Maharashtra government to renegotiate the power purchase agreement with the US energy giant Enron-promoted Dabhol Power Company.

According to highly placed government sources, Salve's name has been cleared by both the ministries of finance and power.

The Maharashtra government has appointed a negotiating committee headed by former bureaucrat Madhav Godbole to renegotiate the estranged PPA signed by the Maharashtra State Electricity Board and DPC. Enron had made opening of talks with Maharashtra conditional on the presence of a Centre's representative on the negotiating committee.

Salve would meet secretaries in the ministries of finance, power and law to firm up the Centre's stand on the crisis arising out of payment defaults by MSEB, sources said adding that petroleum secretary is also likely to be included in the panel.

Sources said Enron appeared to be keen on solving the present impasse through negotiations judging from corporation chairman Kenneth Lay's statement yesterday in Houston that the company had no plans to sell its stake in the $2.9 billion Dabhol project.

The government is likely to make a formal announcement of Salve's appointment on the negotiating committee by the weekend, sources said.

The negotiating committee would suggest solutions to bring down the exorbitant power tariffs, separating of the liquefied natural gas facility, restructuring of DPC and allowing sale of excess power through central utilities, mainly the National Thermal Power Corporation, sources said.

The DPC board had late last month authorised the local manager in India to issue termination notice to MSEB following a bitter payment controversy.

DPC has already slapped one conciliation notice on the Centre and three arbitration notices on the state government over non-payment of dues.

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History of Enron's Dabhol power plant: Reuters

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