Subject: from the enron india newsdesk - may 4 th newsclips
vince / stinson ,
some news articles on india . it appears that dpc will attend the may 11
meeting , but will not be presenting any proposals .
they will be taking representatives from the lender side , ge and bechtel , as
well as from the lng supplier side .
also , a name has been thrown up as the likely person to represent the center .
regards ,
sandeep .
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05 / 04 / 2001 02 : 36 pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
nikita varma
05 / 04 / 2001 07 : 47 am
to : nikita varma / enron _ development @ enron _ development
cc : ( bcc : sandeep kohli / enron _ development )
subject : from the enron india newsdesk - may 4 th newsclips
the economic times
friday , may 04 , 2001 , http : / / www . economictimes . com / today / 04 infrol . htm
godbole panel suggestions unacceptable : enron , girish kuber
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the above article also appeared in the following newspaper :
business standard
friday , may 04 , 2001 ,
godbole terms of reference not acceptable : dpc
the hindustan times
power purchase talks between govt , enron falls through
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the times of india
friday , may 04 , 2001 , http : / / www . timesofindia . com / today / 04 busi 2 . htm
enron ready to take part in ppa talk , nitin yeshwantrao
the financial express
friday , may 04 , 2001 , http : / / www . financialexpress . com / fe 20010504 / ecol 0 . html
dpc team to appear before godbole panel on may 11
the above article also appeared the following newspapers :
mid day
enron , state govt to meet next week
the hindu businessline
friday , may 04 , 2001 , http : / / www . hindubusinessline . com / stories / 140456 uy . htm
enron wants renegotiation meet rescheduled
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afternoon
friday , 4 may , 2001 , http : / / www . afternoondc . com /
houston team to meet godbole
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business standard
friday , may 04 , 2001 ,
salve may represent centre on enron talks panel
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the times of india
friday , may 04 , 2001 , http : / / www . timesofindia . com / today / 04 busi 2 . htm
salve may represent centre on enron talk panel
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pioneer
friday , may 04 , 2001 ,
enron talks : salve may be govt man
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mid day
friday 4 may 2001 ,
enron ' s rates too high : mseb
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the economic times , friday , may 04 , 2001
godbole panel suggestions unacceptable : enron , girish kuber
hopes that the godbole committee would be able to renegotiate the dabhol
power project promoted by the us energy major enron may turn out to be
misplaced . the us energy major says that the godbole committee  , s suggestions
were unacceptable . in response to a query from et , the company said in a
statement that the  & published terms of the godbole report do not represent
an acceptable basis for further discussions .  8 the statement said that it
would be meeting the committee next week as  & a matter of courtesy  8 .  & since
the purpose of our meeting is to hear out the committee and understand their
thoughts , we will not present any proposals ,  8 the statement said . according
to highly - placed sources in the government , the company has informed the
madhav godbole panel that it would be meeting on may 11 . earlier reports had
indicated that the discussions with the panel would take place on may 5 .
according to sources , enron would be meeting the panel with representatives
of its lenders and shareholders . the godbole committee , that studied the
current power purchase agreement , has called for cancellation of the present
tariff structure , renegotiation of the lng and shipping contract , removal of
dollar denomination as far as fixed charges of the tariff is concerned , debt
restructuring and the formation of a committee to renegotiate the power
purchase agreement . these suggestions , it seems , may not be acceptable to
enron . the maharashtra government accepted the report and asked the godbole
committee to renegotiate . the committee has been given a month  , s time to
renegotiate on behalf of the state government with dpc for a new ppa .
the committee has opined that since the lng facility of 5 mmpta is far in
excess of what is required by the plant ( only 2 . 1 mmpta of which 1 . 8 mmpta is
on take or pay ) , it should be separated into a distinct facility whose
capital costs should not be reflected in the fuel charge , not as take or pay .
it should instead be only in proportion to the fuel regassified for the power
generation . using the entire allocated gas requires an unusually high plf .
instead , the surplus gas can be sold to other players like petronet or enron  ,
s own metgas .  & it is important to distribute the cost over the entire
capacity and not just the amount sold to the power plant ,  8 says the
committee . similarly , it has been suggested that enron could lease out the
harbour facilities as a common facility to other lng importers . on the lng
contract negotiated by enron for long - term supplies , it has said that since
the lng market has witnessed great changes , particularly as far as prices are
concerned , the power company should take advantage of spot buys and
renegotiate the contract accordingly .
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the times of india , friday , may 04 , 2001
enron ready to take part in ppa talk , nitin yeshwantrao
the enron management has finally agreed to participate in a ' discussion '
with the madhav godbole - led re - negotiation committee set - up to facilitate
the restructuring of the power purchase agreement ( ppa ) signed between the
us power major and the state government . officials of dabhol power company
( dpc ) , a subsidiary of enron , alongwith their team of shareholders and
lenders will arrive here on may 11 for talks with the nine - member godbole
panel . though the dpc spokesperson was reluctant to give a confirmation , a key
mantralaya official told the times of india that the team had expressed
willingness for talks with the experts committee in a bid to end the
imbroglio .
enron ' s response is viewed as a welcome development to amicably resolve the
controversy which had been raging for the last few weeks , with the board of
directors of enron authorising its india md k wade cline to serve a
termination notice to mseb . the state government , on its part , too adopted a
confrontational position by slapping a rs 401 crore rebate charge on dpc for
defaulting on power supply . however , the sudden change of heart by the enron
management is largely attributed to the stand taken by its local lenders led
by industrial development bank of india ( idbi ) which had recently opposed the
move to pull out of the project . this was in contradiction to the stand taken
by the foreign lenders of the dpc who were in favour of slamming the brakes
on disbursement of funds to dpc . the congress - led democratic front government
had publicly declared that it would impress upon the enron management to
renegotiate the ppa as scrapping the project would not be in the interest of
both the parties .
last week , the state government constituted a nine - member panel of experts
under former bureaucrat madhav godbole . godbole had written to the dpc
management inviting it for talks to re - negotiate the ppa on may 5 . for the
delayed response from enron , the meeting has been rescheduled to may 11 . the
issues which would be debated at the meeting include the separation of the
lng facility from the power plant , renegotiating lng supply and shipping
agreements , redefining the dpc tariff and to convert it into a two - part
tariff . the godbole panel will bargain hard for removal of dollar
denomination in the fixed charge component and to allow the maharashtra
government to sell power to third parties .
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the financial express , friday , may 04 , 2001 ,
dpc team to appear before godbole panel on may 11
a battery of dabhol power company ( dpc ) officials and foreign lenders will
appear before the madhav godbole renegotiations committee on may 11  & as a
matter of courtesy , and not for presenting any proposals .  8 simultaneously , the
dpc has made it clear that the published terms of the godbole report do not
represent an acceptable basis for further discussions . the dpc team is likely
to include officials from the enron corp , bechtel , general electric , its
liquefied natural gas suppliers , oman lng and abu dhabi lng and a trustee
bank , abn amro for the proposed may 11 meeting , it is reliably learnt .
mantralaya sources said that the dpc had earlier expressed its inability to
appear before the godbole committee on may 5 , fixed earlier , on account of
the non - arrival of its team from houston and other parts of the world .
however , the company has ultimately decided to meet the godbole committee on
may 11 .
dpc spokesman jimmy mogal said :  & we confirm that dpc has been invited to meet
the recently formed negotiating committee . as a matter of courtesy , we have
agreed to meet them next week . since the purpose of our meeting is to hear
out the committee and understand their thoughts , we will not present any
proposals .  8  & while we have constantly maintained that we are open to a
dialogue towards resolving issues , this meeting in no manner be construed as
an open offer from dpc to renegotiate the terms of the contract . furthermore ,
the published terms report do not represent an acceptable basis for further
discussions ,  8 he added . sources said enron corp chairman kenneth lay is likely
to meet former chief minister sharad pawar to find an acceptable solution
for the ongoing crisis before the may 11 meet . mr lay told the foreign news
agency on wednesday that the enron corp has no immediate plans to sell its
stake in the troubled $ 2 . 9 - billion dabhol power project in western india .
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afternoon , may 4 , 2001
houston team to meet godbole
the enron - promoted dabhol power company ( dpc ) yesterday said it had agreed to
meet the godbole committee " as a matter of courtesy " and this should " in no
manner be construed as an open offer from dpc to renegotiate the terms of the
contract . " in a statement issued last night , the us energy major made it
clear that the purpose of the meeting with the nine member renegotiating
committee was " to hear out the panel and understand their thoughts , and not
present any proposals . "
furthermore , the published terms of the godbole report did not represent any
acceptable basis for towards resolving issues .
earlier , state government sources said that a team of senior officials from
enron headquarters in houston is slated to attend the first godbole
renegotiations committee meeting , now to be held on may 11 . the panel
deferred its meeting from may 5 as in a formal communication , dpc requested
the state government for a suitable date other than the stipulated one , they
said . however , the multinational is yet to send a list of its nominees , who
are due to arrive next week , they said .
meanwhile , the centre is likely to appoint solicitor general harish salve as
its representative on the high - power committee to renegotiate the power
purchase agreement ( ppa ) signed between dpc and maharashtra state electricity
board . other members of the godbole committee are hdfc chairman deepak
parekh , teri director r . k . pachauri , former union energy secretary e . a . s .
sarma , kirit parikh of indira gandhi institute of developmental research ,
maharashtra energy secretary v . m . lal , state finance secretary s . k . srivastav
and mseb chairman vinay bansal .
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business standard , friday , may 04 , 2001
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 ( ppa ) with the us
energy giant enron - promoted dabhol power company ( dpc ) . according to highly
placed government sources , salve  , s name has been cleared by both 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 ( mseb ) 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 ( lng ) facility , restructuring of dpc and allowing sale of excess power
through central utilities , mainly the national thermal power corporation
( ntpc ) , 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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the times of india , friday , may 04 , 2001
salve may represent centre on enron talk 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 ( ppa ) with us energy
giant enron - promoted dabhol power company ( dpc ) . according to highly placed
government sources , salve ' s name had been cleared by both 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 maharashtra state electricity board ( mseb ) and dpc .
enron had made opening of talks with maharashtra conditional on the presence
of centre ' s representative on the negotiating committee . salve would meet
secretaries in the ministries of finance , power and law to firm up centre ' s
stand on the crisis arising out of payment defaults by mseb , sources said ,
adding petroleum secretary is also likely to be included in the panel .
sources said that enron appeared to be keen on solving the present impasse
through negotiations judging from corporation chairman kenneth lay ' s
statement on wednesday in houston that the company had no plans to sell its
stake in the $ 2 . 9 billion dabhol project . ( pti )
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the pioneer , friday , may 04 , 2001 ,
enron talks : salve may be govt man
solicitor general harish salve is likely to be named as centre ' s
representative on the high - power committee appointed by the maharashtra
government to renegotiate the power purchase agreement ( ppa ) with us energy
major enron - promoted dabhol power company . according to sources , mr salve ' s
name has been cleared by the ministries of finance and power . the maharashtra
government recently appointed a committee headed by former bureaucrat madhav
godbole to renegotiate the
ppa signed by the maharashtra state electricity board ( mseb ) and dpc .
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mid day , friday 4 may 2001
enron ' s rates too high : mseb
the maharashtra state electricity board ( mseb ) is planning to convey to the
dabhol power company ( dpc ) , a subisidiary of us energy giant enron , its
inability to pay increased fixed charges at the rate of rs 500 crore a month
from next year . mseb officials said that dpc would be informed about this
during re - negotiation of the power purchase agreement ( ppa ) . as per ppa ,
the increased rate will come into effect from january , 2002 following
completion of dpc ' s 1 , 444 mw second phase of the project in october this
year . the ppa also says that the fixed rate will have to be paid to the
company irrespective of the consumption of electricity .
at present mseb is paying fixed chages of rs 95 crore a month to dpc for
its first phase of the project , generating 740 mw power . ' ' we have been
raising this issue with dpc for last couple of months , highlighting that
this ( fixed charges from next year ) is not viable for us . even state chief
minister vilasrao deshmukh raised the issue in new delhi at a meeting
recently ' ' , the officials said . the board will continue to raise this issue
during the re - negotiation process with dpc . however , dpc officals are
keeping mum over the issue , adopting a ' wait and watch ' policy , they added .
under the second phase of the project , 722 mw power generating capacity will
be achieved by june and remaining 722 mw by october this year , the officials
said .