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Enron Mail |
Vince/Stinson,
Some news articles on India. It appears that DPC will attend the May 11=20 meeting, but will not be presenting any proposals. They will be taking representatives from the Lender side, GE and Bechtel, a= s=20 well as from the LNG Supplier side. Also, a name has been thrown up as the likely person to represent the Cente= r. Regards, Sandeep. ---------------------- Forwarded by Sandeep Kohli/ENRON_DEVELOPMENT on=20 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 4th Newsclips THE ECONOMIC TIMES Friday, May 04, 2001, http://www.economictimes.com/today/04infr01.htm Godbole panel suggestions unacceptable: Enron, Girish Kuber=20 ---------------------------------------------------------------------------= --- ---------------------------------------------------------------------------= --- ---------------------------------- The above article also appeared in the following newspaper: BUSINESS STANDARD Friday, May 04, 2001,=20 http://www.business-standard.com/today/corp13.asp?Menu=3D2 Godbole terms of reference not acceptable: DPC THE HINDUSTAN TIMES Power purchase talks between Govt, Enron falls through=20 http://www.hindustantimes.com/nonfram/040501/detCIT14.asp ---------------------------------------------------------------------------= --- ---------------------------------------------------------------------------= --- ---------------------------------- THE TIMES OF INDIA Friday, May 04, 2001, http://www.timesofindia.com/today/04busi2.htm Enron ready to take part in PPA talk , Nitin Yeshwantrao THE FINANCIAL EXPRESS Friday, May 04, 2001, http://www.financialexpress.com/fe20010504/eco10.html DPC team to appear before Godbole panel on May 11=20 The above article also appeared the following newspapers: MID DAY http://www.chalomumbai.com/asp/article.asp?cat_id=3D29&art_id=3D10264&cat_c= ode=3D2F5 74841545F535F4F4E5F4D554D4241492F5441415A415F4B4841424152&name=3Denron Enron, state Govt to meet next week THE HINDU BUSINESSLINE Friday, May 04, 2001, http://www.hindubusinessline.com/stories/140456uy.htm Enron wants renegotiation meet rescheduled=20 ---------------------------------------------------------------------------= --- ---------------------------------------------------------------------------= --- ---------------------------------- AFTERNOON Friday, 4 May, 2001, http://www.afternoondc.com/=20 Houston team to meet Godbole ---------------------------------------------------------------------------= --- ---------------------------------------------------------------------------= --- ---------------------------------- BUSINESS STANDARD Friday, May 04, 2001,=20 http://www.business-standard.com/today/state1.asp?menu=3D32 Salve may represent Centre on Enron talks panel=20 ---------------------------------------------------------------------------= --- ---------------------------------------------------------------------------= --- ---------------------------------- THE TIMES OF INDIA Friday, May 04, 2001, http://www.timesofindia.com/today/04busi2.htm Salve may represent Centre on Enron talk panel=20 ---------------------------------------------------------------------------= --- ---------------------------------------------------------------------------= --- ---------------------------------- PIONEER Friday, May 04, 2001,=20 http://www.dailypioneer.com/secon2.asp?cat=3D\cap2&d=3Dflash Enron talks: Salve may be Govt man=20 ---------------------------------------------------------------------------= --- ---------------------------------------------------------------------------= --- ---------------------------------- MID DAY Friday 4 May 2001,=20 http://www.chalomumbai.com/asp/article.asp?cat_id=3D29&art_id=3D10281&cat_c= ode=3D2F5 74841545F535F4F4E5F4D554D4241492F5441415A415F4B4841424152 Enron's rates too high: MSEB ---------------------------------------------------------------------------= --- ---------------------------------------------------------------------------= --- ---------------------------------- THE ECONOMIC TIMES, Friday, May 04, 2001=20 Godbole panel suggestions unacceptable: Enron, Girish Kuber=20 HOPES that the Godbole committee would be able to renegotiate the Dabhol=20 power project promoted by the US energy major Enron may turn out to be=20 misplaced. The US energy major says that the Godbole committee=01,s suggest= ions=20 were unacceptable. In response to a query from ET, the company said in a=20 statement that the =01&published terms of the Godbole report do not repres= ent=20 an acceptable basis for further discussions.=018 The statement said that i= t=20 would be meeting the committee next week as =01&a matter of courtesy=018. = =01&Since=20 the purpose of our meeting is to hear out the committee and understand thei= r=20 thoughts, we will not present any proposals,=018 the statement said. Accord= ing=20 to highly-placed sources in the government, the company has informed the=20 Madhav Godbole panel that it would be meeting on May 11. Earlier reports ha= d=20 indicated that the discussions with the panel would take place on May 5.=20 According to sources, Enron would be meeting the panel with representatives= =20 of its lenders and shareholders. The Godbole committee, that studied the=20 current power purchase agreement, has called for cancellation of the presen= t=20 tariff structure, renegotiation of the LNG and shipping contract, removal o= f=20 dollar denomination as far as fixed charges of the tariff is concerned, deb= t=20 restructuring and the formation of a committee to renegotiate the power=20 purchase agreement. These suggestions, it seems, may not be acceptable to= =20 Enron. The Maharashtra government accepted the report and asked the Godbole= =20 committee to renegotiate. The committee has been given a month=01,s time to= =20 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= =20 excess of what is required by the plant (only 2.1 mmpta of which 1.8 mmpta = is=20 on take or pay), it should be separated into a distinct facility whose=20 capital costs should not be reflected in the fuel charge, not as take or pa= y.=20 It should instead be only in proportion to the fuel regassified for the pow= er=20 generation. Using the entire allocated gas requires an unusually high PLF.= =20 Instead, the surplus gas can be sold to other players like Petronet or Enro= n=01, s own Metgas. =01&It is important to distribute the cost over the entire=20 capacity and not just the amount sold to the power plant,=018 says the=20 committee. Similarly, it has been suggested that Enron could lease out the= =20 harbour facilities as a common facility to other LNG importers. On the LNG= =20 contract negotiated by Enron for long-term supplies, it has said that since= =20 the LNG market has witnessed great changes, particularly as far as prices a= re=20 concerned, the power company should take advantage of spot buys and=20 renegotiate the contract accordingly. ---------------------------------------------------------------------------= --- ---------------------------------------------------------------------------= --- ---------------------------------- THE TIMES OF INDIA, Friday, May 04, 2001=20 Enron ready to take part in PPA talk , Nitin Yeshwantrao The Enron management has finally agreed to participate in a 'discussion'= =20 with the Madhav Godbole-led re-negotiation committee set-up to facilitate= =20 the restructuring of the Power Purchase Agreement (PPA) signed between the= =20 US power major and the state government.Officials of Dabhol Power Company= =20 (DPC), a subsidiary of Enron, alongwith their team of shareholders and =20 lenders will arrive here on May 11 for talks with the nine-member Godbole= =20 panel.Though the DPC spokesperson was reluctant to give a confirmation, a k= ey=20 Mantralaya official told The times of India that the team had expressed=20 willingness for talks with the experts committee in a bid to end the=20 imbroglio. Enron's response is viewed as a welcome development to amicably resolve the= =20 controversy which had been raging for the last few weeks, with the board of= =20 directors of Enron authorising its India MD K Wade Cline to serve a=20 termination notice to MSEB. The state government, on its part, too adopted = a=20 confrontational position by slapping a Rs 401 crore rebate charge on DPC fo= r=20 defaulting on power supply.However, the sudden change of heart by the Enron= =20 management is largely attributed to the stand taken by its local lenders le= d=20 by Industrial Development Bank of India (IDBI) which had recently opposed t= he=20 move to pull out of the project. This was in contradiction to the stand tak= en=20 by the foreign lenders of the DPC who were in favour of slamming the brakes= =20 on disbursement of funds to DPC. The Congress-led Democratic Front governme= nt=20 had publicly declared that it would impress upon the Enron management to=20 renegotiate the PPA as scrapping the project would not be in the interest o= f=20 both the parties. Last week, the state government constituted a nine-member panel of experts= =20 under former bureaucrat Madhav Godbole. Godbole had written to the DPC=20 management inviting it for talks to re-negotiate the PPA on May 5. For the= =20 delayed response from Enron, the meeting has been rescheduled to May 11.The= =20 issues which would be debated at the meeting include the separation of the= =20 LNG facility from the power plant, renegotiating LNG supply and shipping=20 agreements, redefining the DPC tariff and to convert it into a two-part=20 tariff. The Godbole panel will bargain hard for removal of dollar=20 denomination in the fixed charge component and to allow the Maharashtra=20 government to sell power to third parties. ---------------------------------------------------------------------------= --- ---------------------------------------------------------------------------= --- ---------------------------------- THE FINANCIAL EXPRESS, Friday, May 04, 2001,=20 DPC team to appear before Godbole panel on May 11=20 A battery of Dabhol Power Company (DPC) officials and foreign lenders will= =20 appear before the Madhav Godbole renegotiations committee on May 11 =01&as = a=20 matter of courtesy,and not for presenting any proposals.=018Simultaneously,= the=20 DPC has made it clear that the published terms of the Godbole report do not= =20 represent an acceptable basis for further discussions. The DPC team is like= ly=20 to include officials from the Enron Corp, Bechtel, General Electric, its= =20 Liquefied Natural Gas suppliers, Oman LNG and Abu Dhabi LNG and a Trustee= =20 Bank, ABN Amro for the proposed May 11 meeting, it is reliably learnt.=20 Mantralaya sources said that the DPC had earlier expressed its inability to= =20 appear before the Godbole committee on May 5, fixed earlier, on account of= =20 the non-arrival of its team from Houston and other parts of the world.=20 However, the company has ultimately decided to meet the Godbole committee o= n=20 May 11. DPC spokesman Jimmy Mogal said: =01&We confirm that DPC has been invited to= meet=20 the recently formed negotiating committee. As a matter of courtesy, we ha= ve=20 agreed to meet them next week. Since the purpose of our meeting is to hea= r=20 out the committee and understand their thoughts, we will not present any=20 proposals.=018 =01&While we have constantly maintained that we are open to= a=20 dialogue towards resolving issues, this meeting in no manner be construed a= s=20 an open offer from DPC to renegotiate the terms of the contract. Furthermor= e,=20 the published terms report do not represent an acceptable basis for further= =20 discussions,=018 he added.Sources said Enron Corp chairman Kenneth Lay is l= ikely=20 to meet former chief minister Sharad Pawar to find an acceptable solution= =20 for the ongoing crisis before the May 11 meet. Mr Lay told the foreign news= =20 agency on Wednesday that the Enron Corp has no immediate plans to sell its= =20 stake in the troubled $2.9-billion Dabhol power project in western India. ---------------------------------------------------------------------------= --- ---------------------------------------------------------------------------= --- ---------------------------------- AFTERNOON, May 4, 2001 Houston team to meet Godbole=20 The Enron-promoted Dabhol Power Company (DPC) yesterday said it had agreed = to=20 meet the Godbole Committee "as a matter of courtesy" and this should "in no= =20 manner be construed as an open offer from DPC to renegotiate the terms of t= he=20 contract." In a statement issued last night, the US energy major made it=20 clear that the purpose of the meeting with the nine member renegotiating=20 committee was "to hear out the panel and understand their thoughts, and not= =20 present any proposals."=20 Furthermore, the published terms of the Godbole report did not represent an= y=20 acceptable basis for towards resolving issues.=20 Earlier, state government sources said that a team of senior officials from= =20 Enron headquarters in Houston is slated to attend the first Godbole=20 renegotiations committee meeting, now to be held on May 11. The panel=20 deferred its meeting from May 5 as in a formal communication, DPC requested= =20 the state government for a suitable date other than the stipulated one, th= ey=20 said. However, the multinational is yet to send a list of its nominees, who= =20 are due to arrive next week, they said.=20 Meanwhile, the centre is likely to appoint Solicitor General Harish Salve a= s=20 its representative on the high-power committee to renegotiate the Power=20 Purchase Agreement (PPA) signed between DPC and Maharashtra State Electrici= ty=20 Board. Other members of the Godbole Committee are HDFC Chairman Deepak=20 Parekh, Teri Director R.K. Pachauri, former union energy secretary E.A.S.= =20 Sarma, Kirit Parikh of Indira Gandhi Institute of Developmental Research,= =20 Maharashtra Energy Secretary V.M. Lal, state finance secretary S.K. Srivast= av=20 and MSEB Chairman Vinay Bansal.=20 ---------------------------------------------------------------------------= --- ---------------------------------------------------------------------------= --- ---------------------------------- BUSINESS STANDARD, Friday, May 04, 2001 Salve may represent Centre on Enron talks panel=20 Solicitor general Harish Salve is likely to be named the Centre=01,s=20 representative on the high-power committee appointed by the Maharashtra=20 government to renegotiate the power purchase agreement (PPA) with the US=20 energy giant Enron-promoted Dabhol Power Company (DPC). According to highly= =20 placed government sources, Salve=01,s name has been cleared by both ministr= ies=20 of finance and power. The Maharashtra government has appointed a negotiating committee headed by= =20 former bureaucrat Madhav Godbole to renegotiate the estranged PPA signed by= =20 the Maharashtra State Electricity Board (MSEB) and DPC. Enron had made=20 opening of talks with Maharashtra conditional on the presence of a Centre= =01,s=20 representative on the negotiating committee. Salve would meet secretaries i= n=20 the ministries of finance, power and law to firm up the Centre=01,s stand o= n the=20 crisis arising out of payment defaults by MSEB, sources said adding that=20 petroleum secretary is also likely to be included in the panel. Sources said Enron appeared to be keen on solving the present impasse throu= gh=20 negotiations judging from corporation chairman Kenneth Lay=01,s statement= =20 yesterday in Houston that the company had no plans to sell its stake in the= =20 $2.9 billion Dabhol project. The government is likely to make a formal=20 announcement of Salve=01,s appointment on the negotiating committee by the= =20 weekend, sources said. The negotiating committee would suggest solutions to= =20 bring down the exorbitant power tariffs, separating of the liquefied natura= l=20 gas (LNG) facility, restructuring of DPC and allowing sale of excess power= =20 through central utilities, mainly the National Thermal Power Corporation=20 (NTPC), sources said. The DPC board had late last month authorised the loca= l=20 manager in India to issue termination notice to MSEB following a bitter=20 payment controversy. DPC has already slapped one conciliation notice on the= =20 Centre and three arbitration notices on the state government over non-payme= nt=20 of dues. ---------------------------------------------------------------------------= --- ---------------------------------------------------------------------------= --- ---------------------------------- THE TIMES OF INDIA, Friday, May 04, 2001=20 Salve may represent Centre on Enron talk panel=20 Solicitor General Harish Salve is likely to be named the Centre's=20 representative on the high-power committee appointed by the Maharashtra=20 government to renegotiate the power purchase agreement (PPA) with US energy= =20 giant Enron-promoted Dabhol Power Company (DPC). According to highly placed= =20 government sources, Salve's name had been cleared by both ministries of=20 finance and power. The Maharashtra government has appointed a negotiating= =20 committee headed by former bureaucrat Madhav Godbole to renegotiate the=20 estranged PPA signed by Maharashtra State Electricity Board (MSEB) and DPC= .=20 Enron had made opening of talks with Maharashtra conditional on the presenc= e=20 of Centre's representative on the negotiating committee. Salve would meet= =20 secretaries in the ministries of finance, power and law to firm up Centre's= =20 stand on the crisis arising out of payment defaults by MSEB, sources said,= =20 adding petroleum secretary is also likely to be included in the panel.=20 Sources said that Enron appeared to be keen on solving the present impasse= =20 through negotiations judging from corporation chairman Kenneth Lay's=20 statement on Wednesday in Houston that the company had no plans to sell its= =20 stake in the $2.9 billion Dabhol project. (PTI) ---------------------------------------------------------------------------= --- ---------------------------------------------------------------------------= --- --------------------------------- THE PIONEER, Friday, May 04, 2001,=20 Enron talks: Salve may be Govt man=20 Solicitor General Harish Salve is likely to be named as Centre's=20 representative on the high-power committee appointed by the Maharashtra=20 Government to renegotiate the Power Purchase Agreement (PPA) with US energy= =20 major Enron-promoted Dabhol Power Company. According to sources, Mr Salve's= =20 name has been cleared by the Ministries of Finance and Power. The Maharasht= ra=20 Government recently appointed a committee headed by former bureaucrat Madha= v=20 Godbole to renegotiate the=20 PPA signed by the Maharashtra State Electricity Board (MSEB) and DPC. ---------------------------------------------------------------------------= --- ---------------------------------------------------------------------------= --- --------------------------------- MID DAY, Friday 4 May 2001 Enron's rates too high: MSEB The Maharashtra State Electricity Board (MSEB) is planning to convey to th= e=20 Dabhol Power Company (DPC), a subisidiary of US energy giant Enron, its=20 inability to pay increased fixed charges at the rate of Rs 500 crore a mon= th=20 from next year. MSEB officials said that DPC would be informed about this= =20 during re-negotiation of the power purchase agreement (PPA). As per PPA,= =20 the increased rate will come into effect from January, 2002 following=20 completion of DPC's 1,444 MW second phase of the project in October this= =20 year. The PPA also says that the fixed rate will have to be paid to the=20 company irrespective of the consumption of electricity.=20 At present MSEB is paying fixed chages of Rs 95 crore a month to DPC for= =20 its first phase of the project, generating 740 MW power. ''We have been=20 raising this issue with DPC for last couple of months, highlighting that= =20 this (fixed charges from next year) is not viable for us. Even state Chief= =20 Minister Vilasrao Deshmukh raised the issue in New Delhi at a meeting=20 recently'', the officials said. The board will continue to raise this issue= =20 during the re-negotiation process with DPC. However, DPC officals are=20 keeping mum over the issue, adopting a 'Wait and Watch' policy, they added= . =20 Under the second phase of the project, 722 MW power generating capacity wi= ll=20 be achieved by June and remaining 722 MW by October this year, the officia= ls=20 said.=20
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