|
|
Enron Mail |
BUSINESS STANDARD, Thursday, November 15, 2001
FIs peg reserve price of Dabhol at $700 million ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE ECONOMIC TIMES, Wednesday, November 14, 2001 Editorials - Just stick it out or be a sucker, Abracadabra / Shubhrangshu R= oy=20 ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE HINDU BUSINESS LINE, Wednesday, November 14, 2001 'LNG Laxmi' to bring prosperity to SCI, P.Manoj=20 ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE FINANCIAL EXPRESS, Wednesday, November 14, 2001 DPC arbitration tribunal to meet on November 24, Sanjay Jog=20 ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE TIMES OF INDIA, Thursday, November 15, 2001 `Enron buyout will not affect Dabhol project' ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE FINANCIAL EXPRESS, Thursday, November 15, 2001 DPC meet suggests lenders taking cut, MAT exemption, Sanjay Jog=20 ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE FINANCIAL EXPRESS, Thursday, November 15, 2001 Andersen's underbelly gets exposed, Sunil Jain=20 ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE ASIAN AGE, Friday, November 16, 2001 Bidders demand distribution rights, Rajesh Unnikrishnan=20 ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE FINANCIAL EXPRESS, Friday, November 16, 2001 MSEB asks Dabhol Power to defer Houston meet in wake of HC order, Sanjay Jo= g=20 ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE ASIAN AGE, Saturday, November 17, 2001 MSEB 'will not' attend DPC meet in Houston --------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------- THE DECCAN CHRONICLE, Saturday, November 17, 2001 MSEB to skip Enron board meet=20 ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE INDIAN EXPRESS, Saturday, November 17, 2001 Parleys on Enron stake sale continue; BSES, Tata Power begin due diligence ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE HINDU BUSINESS LINE, Sunday, November 18, 2001 It is deal-making time in Dabhol, D. Sampathkumar ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE ECONOMIC TIMES, Wednesday, November 14, 2001 'DPC sale to be decided by Enron, Tatas, BSES'=20 ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE TIMES OF INDIA, Thursday, November 15, 2001 Tatas, BSES keen to acquire DPC=20 ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE ECONOMIC TIMES, Sunday, November 18, 2001 Govt not to encash gurantees against DPC=20 Similar story also appeared in the following publication: THE TIMES OF INDIA, Sunday, November 18, 2001 Govt restrained from encashing DPC guarantees ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE ECONOMIC TIMES, Friday, November 16, 2001 FIs for allotting distribution zone to DPC buyer, Anto T Joseph ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ BUSINESS STANDARD, Thursday, November 15, 2001 FIs peg reserve price of Dabhol at $700 million The Indian financial institutions (FIs) led by the Industrial Bank of India= (IDBI) have fixed the reserve price of the $3 billion Dabhol Power Company= at $700 million. At a meeting in Singapore last week with the two prospect= ive bidders _ BSES and Tata Power Company _for the controversial 2,184 MW p= ower project, IDBI chairman P.P. Vora reportedly took a hard line and told = them in no uncertain terms that they should be prepared to put in at least = $700 million for the project. BSES and Tata Power have evinced interest in = acquiring an 85 per cent stake in DPC (65 per cent of Enron Corporation of = the US and 10 per cent each of Bechtel Enterprises and General Electric's e= quity). "Technically, no bid has been called for. But for all practical pur= poses, the reserve price has been fixed at $700 million as the IDBI chairma= n made it clear to the BSES and Tata Power brass that DPC would not be sold= cheaper than this," an institutional source said.=20 Both the companies seem to have accepted the IDBI stand on the project's pr= ice as they are planning to start due diligence of the project, after signi= ng a confidentiality agreement with DPC. The FIs have taken a proactive rol= e in scouting for a white knight for DPC because they would end up sinking = hefty sums in the venture. The total exposure (both funded and non-funded) = of the Indian banks and financial institutions to DPC is about Rs 6,100 cro= re _ about 70 per cent of the debt component of the project built on a 70:3= 0 debt: equity ratio. IDBI has the maximum exposure (around Rs 2,300 crore)= , followed by the State Bank of India (Rs 1,800 crore) and ICICI (Rs 1,700 = crore). Besides, the Industrial Finance Corporation of India (IFCI) and Can= ara Bank also have exposure to the project. The Singapore meeting focused o= n completing Phase-II of the project and the sale of the shareholding oh En= ron, Bechtel and General Electric to either of the prospective new buyers, = BSES and Tata Power. DPC has mothballed phase I of the project (740 MW) som= e time back. Phase-II of the project, 90 per cent of which has been complet= ed, includes a LNG processing facility of about 5 million tonne per annum.= =20 ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE ECONOMIC TIMES, Wednesday, November 14, 2001 Editorials - Just stick it out or be a sucker, Abracadabra / Shubhrangshu R= oy=20 YOU move a step forward and you are a sucker, you move a step backward and = you are a sucker still. That just about sums up India's predicament in tryi= ng to get one-time US energy trading giant Enron off its back and off the 2= ,100 MW Dabhol power plant for some time now. For the past fortnight or so,= the institutions have been bargaining hard to find a buyer for Enron's ass= ets in Maharashtra, having committed over Rs 6,200 crore in loans. Last wee= kend, they even went into a huddle in Singapore to sew up the loose ends of= a bail-out. Little seems to have been thrashed out so far. Little possibly= will. Unless, of course, the FIs tighten the screws with a take-it or leav= e-it offer. The time to make that choice is now. A gentleman in pin-stripes= who's done a lot of running around these past few weeks to help sew up the= deal, told me the other day that Enron had indeed agreed to part with its = stake in DPC at a 30 per cent discount. That would have fetched it just abo= ut $800-odd million spread over a five-year period. So, why hasn't a deal b= een struck?=20 It's probably not worked out because of what Enron considers a fair discoun= t on what it has sunk into the project. Prospective buyers consider this to= o high an asking price. For the record, Enron claims to have sunk in $1.2 b= illion in the project together with its partners GE and Bechtel who have su= pplied equipment and helped construct the plant. But my gentleman friend in= pin-stripes suggests that $1.2 billion isn't exactly their equity contribu= tion in Dabhol. That amount works out to just about $800 million. Enron, ac= tually splurged close to $200 million on development expenses, which in gen= tlemen's lingo is another way of saying that the energy giant could have en= ded up bribing its way to see the once coveted project through besides figh= ting sundry court cases in India. And it wants part of that money back. Now= which prospective buyer will compensate Enron for possible bribes or for m= aking court appearances?=20 Enron, it appears, has also claimed another $140 million as its share of Da= bhol's retained earnings, which should eventually go to all stake-holders i= n DPC (the MSEB included) once the company's board passes a resolution that= the amount is shared proportionately among all those who have invested in = Dabhol's equity capital. Till then, leave the retained earnings aside. So, = what Enron should work on is a fair discount on its equity contribution in = the project, which is no more than $800 million. Now given its willingness = to take a 30 per cent knock, Enron should not expect more than $560 million= as the asking price for walking out of Dabhol. Add to that, if you will, a= nother $140 million by way of retained earnings and Enron should not be get= ting more than $700 million at the most. Is Enron willing to take this knoc= k?=20 Given a choice, it could resist this offer. But Enron has no choice. And th= at's reason for cheer. Last week, Enron, close to the present American disp= ensation (chairman Ken Lay was the biggest fund-raiser for President George= Bush's campaign effort last year) opted for a $7.8 billion rescue offer fr= om smaller Houston rival Dynegy after narrowly escaping credit ratings cut = to junk status. For the past several months Enron had been using its clout = with Mr Bush to push through a bail-out package on Dabhol that suited its t= erms. That privilege now seems to be gone as the company grapples to stave = off a Securities Exchange Commission inquiry into off-balancesheet transact= ions. And until Enron clears several questions back home about its finances= , it will remain suspect in the eyes of US investors.=20 In India, where Enron's made more news for its misses than its hits, the ti= ming couldn't have been more opportune than now for prospective private bid= ders to strike a potentially lucrative deal. Two such bidders, Tata Power a= nd BSES, are said to have offered no more than $400 million to buy out Enro= n's stake in DPC. It's time they stuck to that price. Or else, we could sti= ll end up being suckers. What?=20 ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE HINDU BUSINESS LINE, Wednesday, November 14, 2001 'LNG Laxmi' to bring prosperity to SCI, P.Manoj=20 A DIWALI gift is on the way to State-owned Shipping Corporation of India (S= CI) when a consortium takes possession of a 137,000 cubic metre capacity LN= G tanker from Japan's Mitsubushi yard on Thursday (November 15) after weath= ering a last minute financial storm. Aptly named `LNG Laxmi', after the God= dess of Wealth and Prosperity, SCI's 20 per cent equity stake in the projec= t worth $ 1 million will bring in returns in the form of time charter hire = rates in proportion to its equity holding. Though, the 20 per cent stake wi= ll ensure a board presence for SCI on the joint venture Greenfield Shipping= Company, it falls short of ensuring veto powers for the State-owned shippi= ng line. This is the maiden foray by an Indian shipping company into the hi= ghly specialised and capital- intensive LNG shipping trade, marked by stead= y revenue streams over long periods, ranging from 10 to 25 years. Says Mr P= K Srivastava, Chairman and Managing Director, SCI: ``This was a pioneering= effort by an Indian shipping company into LNG shipping.=20 So we were very keen that we should not fumble. We are optimistic that the = experience gained from Greenfield would lead us to more such ventures in fu= ture.'' Rightly so. While LNG Laxmi was being built, SCI also secured its s= econd LNG shipping deal, when it teamed up with Mistui, NYK Line and K Line= to clinch the contract from Petronet LNG Limited (PLL) for owning and oper= ating two tankers of 138,000 cubic metre capacity each for transporting gas= from Qatar to Dahej in Gujarat. Though SCI had only 20 per cent stake in G= reenfield, it managed to secure a higher holding of 34.21 per cent in the P= LL deal worth Rs 130 crore. Originally, LNG Laxmi was ordered for transport= ing 2.5 million metric tonnes per annum of LNG from Oman to the controversi= al Dabhol Power Project in Maharashtra.=20 Greenfield was formed for owning and operating the tanker costing $220 mill= ion. The consortium members comprise Japan's Mitsui O.S.K. Lines holding 60= per cent stake, SCI and Enron-affiliate Atlantic Commercial Inc with 20 pe= r cent stake apiece. Greenfield had entered into a time charter agreement w= ith DPC for transporting gas from Oman to its power plant in Maharashtra fo= r a period of 20 years at a time charter hire rate of $98,600 per day. With= DPC in trouble, the time charter party signed between DPC and Greenfield w= ill be scrapped. `LNG Laxmi' went through major birth pangs before the prom= oters were able to take possession of the vessel. In the process, Greenfiel= d underwent a major change in the complexion of its promoters leading to a = re-alignment in the equity holding pattern.When Enron announced its intenti= on to exit from DPC by selling its equity in view of the problems facing th= e power plant, the bankers to the LNG shipping deal led by ANZ Investment B= ank, decided not to disburse the last tranche of the project loan of $ 55 m= illion, declaring an event of default. This was after the 16-member lending= consortium had provided $ 110 million as debt to fund the project out of a= total loan commitment of $ 165 million. The three promoters were now requi= red to invest an additional $ 55 million to bridge the gap in the project c= ost to take possession of the vessel or face the risk of the tanker being c= onfiscated by the lenders to recover their investments.=20 Then came the knight in shining armour in the form of the Oman Government w= ho was generous enough to bail out LNG Laxmi from the tentacles of the lend= ers. The Oman Government offered to time charter LNG laxmi for 20 years at = a charter hire rate of over $70,000 per day besides picking up 50 per cent = equity in Greenfield, buying out the 20 per cent stake of Atlantic as well = as acquiring 30 per cent from Mitsui. The financial crisis facing LNG Laxmi= was thus sorted out. Oman Government would bring in $27.5 million as its c= ontribution for holding a 50 per cent stake in Greenfield, Mitsui will inve= st an additional $ 16.5 million for its 30 per cent stake while SCI's extra= contribution would be $11 million for its 20 per cent stake. As per curren= t plans, the Oman Government will sub-charter `LNG Laxmi' to Oman LNG in wh= ich it holds a 51 per cent stake to ferry some of its LNG cargo to Korea an= d Britain, among other destinations.=20 ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE FINANCIAL EXPRESS, Wednesday, November 14, 2001 DPC arbitration tribunal to meet on November 24, Sanjay Jog=20 The maiden meeting of the arbitration tribunal headed by Lord Mustill, afte= r the takeover of Enron Corp by the Dynegy Inc, will take place on November= 24 in London to decide the future course of action on carrying out arbitra= tion proceedings against the Maharashtra government initiated by the Dabhol= Power Company (DPC) for the non-payment of December bill of Rs 102 crore. = The arbitration tribunal comprises Maharashtra government's arbitrator Quei= nton Loh and the DPC's arbitrator Andrew John Rogers QC (former chief judge= of the commercial division of the Supreme Court of New South Wales). The m= eeting deserves significance especially when the conciliatory efforts betwe= en the DPC, the Maharashtra government and the government of India which co= ncluded on August 18 failed to reach a compromise formula as the trio stuck= to their stands. The DPC referred the matter of non-payment of December bi= ll to the arbitration tribunal led by Lord Mustill.=20 Sources told The Financial Express that the November 24 meeting would decid= e the future timetable of arbitration proceedings to be held in London as p= er the power purchase agreement and the UNCITRAL Arbitration Rules. The dis= pute related to the non-payment of December bill would be taken up during t= hese proceedings. The DPC, which has been restrained by the Supreme Court f= rom proceeding against the Maharashtra State Electricity Board for carrying= out arbitration process until the issue of jurisdiction of Maharashtra Ele= ctricity Regulatory Commission is resolved, in its arbitration notice serve= d on April 12 had said that the board had disputed the payment of December = 2000 bill. The MSEB, which was served a total bill of Rs 159.86 crore on Ja= nuary 5, 2001 failed to pay the full the sum on the due date, January 25.= =20 ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE TIMES OF INDIA, Thursday, November 15, 2001 `Enron buyout will not affect Dabhol project' The buyout of Enron Corp by its rival, Dynegy Inc, would have no bearing on= the future of the Dabhol Power project for the moment. It is learnt that t= alks on selling out Enron's investment in DPC, amounting to over $ 1 billio= n, would continue as before. A DPC spokesman said, "It is too early to comm= ent on how this will impact us." On the question of selling Enron's stake i= n DPC, he said, "While discussions are happening, it will be inappropriate = to comment." According to the agreement worked out last week with Dynegy, E= nron Corp would sell its share for $9.5 million. Pointing out that the deal= with Dynegy would materialise only in the third quarter of 2002, an offici= al with a Indian financial institution aid, "It is important to realise tha= t this is not a deal based on balance sheets but a stock-swap."=20 The deal was announced even as Indian and foreign lenders to the DPC were m= eeting in Singapore with DPC office-bearers to negotiate with bidders. The = prominent companies interested in buying out DPC at this stage are Tata Pow= er and Bombay Suburban Electric Supply (BSES). A senior official with a fin= ancial institution said that though assets like DPC could be transferred to= Dynegy at a later stage, these aspects would emerge only later in the talk= s to consolidate the takeover. Financial institutions though are concerned = about the fallout of the deal on the offers received for Enron's stake in D= PC. Also, the legal status of such a sale, if it does take place, would hav= e to be scrutinised carefully, says a senior official of a company which ha= s lent funds to DPC. In Singapore, Indian FIs led by IDBI and including ICI= CI and State Bank of India met DPC executives over two days from November 8= and discussed the pricing of the stake of the three multinational partners= in DPC - Enron, Bechtel and General Electric - with the prospective sponso= rs, Tata Power and BSES. Incentives promised by the Centre to expedite reso= lution of the decade-old controversy and the possibility of an affordable t= ariff also came up for discussion.=20 ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE FINANCIAL EXPRESS, Thursday, November 15, 2001 DPC meet suggests lenders taking cut, MAT exemption, Sanjay Jog=20 A reduction in per unit tariff at Rs 2.70, equity holders and lenders to ta= ke hits and cuts, a cut in interest rate, exemption from payment of minimum= alternate tax, providing mega power status for the Dabhol project and, abo= ve all, separation of the liquefied natural gas (LNG) facility from the pow= er project are some of the highlights of the package considered by the Indi= an Financial Institutions (IFIs) along with Dabhol Power Company (DPC), Tat= a Power and BSES at the recently concluded three-day meet in Singapore.=20 IFI sources involved in the Singapore meeting told The Financial Express th= at the participants have made it clear that the implementation of the packa= ge would not be possible unless the present equity holders and lenders are = prepare to take hits and cuts and the Government of India, Government of Ma= harashtra and Maharashtra State Electricity Board (MSEB) provide substantia= l incentives and concessions. The emphasis has been laid on a substantial r= eduction in tariff and an early completion of Dabhol phase-II - the constru= ction of which has been suspended since June 17. "The project will continue= to languish if there is no possibility of providing power at an affordable= tariff by adding value to the equity," sources added.=20 According to sources, both equity holders and lenders would stand to loose = enormously as both would have to take hits and cuts. "The existing equity p= romoter would have to be prepared to take a substantial cut in the equity v= alue without which the tariff would not come down to a reasonable level," s= ources said. They have stressed the need for a payment security mechanism f= or the sale of power. "The Government of Maharashtra will have to take a po= licy decision to allot suitable distribution circles of above 1,500 mw capa= city load without which the project will remain unviable," sources said. Th= e IFIs and utilities have demanded that the Centre would have to provide ex= emption from the payment of minimum alternate tax (MAT). "Such an incentive= is needed as tax is passed on to the consumers. The exemption in MAT will = ultimately help in the reduction of tariff," sources said. The package also= envisages substantial reduction in interest rates by lenders, conversion o= f foreign debt into rupee debt so that the price of power would not get aff= ected following foreign exchange fluctuations. The IFIs, DPC, Tata Power an= d BSES have also suggested a suitable moratorium period of 15 years or more= . They have unanimously called for providing a mega power status to the Dab= hol project in a bid to get concessions in the customs duty.=20 According to sources, the existing promoters would have to facilitate final= isation of a new fuel supply agreement which would result in the fall in co= st of supply. Further, the LNG facilities would have to be restructured to = help reduce the capital cost substantially. According to the power purchase= agreement between DPC and MSEB, the re-gassification facility is for 5 mil= lion metric tonne per day (MMTPA) of LNG, whereas the power plant has contr= acted for only 2.1 MMTPA of LNG (of which 1.8 million tonne is take or pay)= , and even using that requires an unreasonably high plant load factor. Acco= rding to Madhav Godbole renegotiation committee, after segregating the LNG = facility, it could be marketed to other buyers of gas, separate from the po= wer project. Sources said various government departments and lenders would = have to consider this package as appropriate decisions would have to be tak= en at different levels. Moreover, cabinet decisions as well as approvals fr= om the board of directors of IDBI, ICICI and other lenders would also be re= quired for the implementation of the package.=20 ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE FINANCIAL EXPRESS, Thursday, November 15, 2001 Andersen's underbelly gets exposed, Sunil Jain=20 The Enron disclosures raise questions about top-notch audit firms. After al= l the curious financial dealings of various Enron Corp officials, comes the= admission that the firm had overstated its profits by around a fifth for t= he past four years. The disclosure comes in a Securities and Exchange Commi= ssion filing on the eve of the Enron-Dynegy takeover talks. For those India= ns who've been agitating against Dabhol Power Company plant in Maharashtra,= all this is, of course, just another 'example' of the power company's perf= idy. If Enron could do this in the US, imagine the kind of fiddles it must = have done in the case of the Dabhol plant.=20 This, may or may not be true, and certainly needs to be proved. But the fir= m whose reputation has taken an equal, if not bigger beating, is the audit = firm Arthur Andersen, a reputed global player. What was, a lawsuit filed la= st week in Oregon asks, Arthur Andersen doing when all this happened? How c= ould Andersen not find anything fishy with Enron's financial deals? And, th= ough the law suit doesn't deal with this, how did Andersen allow such a mas= sive over-stating of profits? While only a probe will reveal how things man= aged to go so wrong, it's a good idea to go back and read a book called The= Big Six by Mark Stevens, incidentally also the author of The Big Eight, wh= ich is the number of the top global audit firms before they consolidated an= d reduced their number to six. Stevens' most evocative story is the one abo= ut ZZZZ Best, the carpet-cleaning business begun by Barry J Minkow. Barry b= uilt his company into a formidable enterprise with a turnover of $ five mn,= and then decided to go public, and while doing so, boasted that his firm w= as in the lucrative insurance-restoration business - that is, he got restor= ation contracts from insurance firms. Minkow then hired top accounting firm= Ernst & Whinney (that later merged with Arthur Young to become Ernst & You= ng) to help boost his image.=20 Ernst decided to do an audit of Minkow's insurance business. Minkow hired s= omeone's office in Sacramento, bribed the security guard to pretend he was = familiar with ZZZZ's staff and forced Ernst to do an inspection on a Sunday= , when other offices were closed. Ernst gave a glowing report of the busine= ss. The same pattern of 'inspections' was then repeated in other cities. Wh= en the scandal became public, Ernst pleaded they couldn't be blamed for not= being able to detect such an elaborate fraud, and they certainly didn't ha= ve the skills of the police. The police, who, for instance, just spent arou= nd ten minutes in each city going to the building department to find out if= the buildings that ZZZZ was helping 'restore' had ever had a fire or water= leakages ZZZZ claimed they'd had.=20 Fair enough, but the House Committee on Oversight asked what about the 'con= fidentiality letter' that Ernst had signed? A confidentiality letter that s= aid Ernst would never disclose the location of the buildings ZZZZ was resto= ring to any third party - that's fine. It also said it would 'not make any = follow-up telephone calls to any contractors, insurance companies, the buil= ding owner ... involved in the restoration project.' Congressman Ron Wyden = asked Ernst how it proposed to do an independent audit with such restrictio= ns? Ernst said 'It did not restrict me being able to perform that and I did= go on site ... if I would have had any questions that came up in the cours= e of that review, I would have pursued those questions ...' Of course, ques= tions didn't come up because Ernst wasn't looking too hard.=20 It gets better. An informant told Ernst the 'restoration' job it had inspec= ted in Sacramento was a fake. Later, the charge was withdrawn, but none of = this made Ernst want to revisit the Sacramento site. Later, Ernst walked ou= t on ZZZZ after some bad press about false credit card billings by ZZZZ, an= d the account was taken over by Price Waterhouse. This despite Ernst tellin= g Price Waterhouse that it had found evidence of payments by ZZZZ to the in= dividual who made and then withdrew the complaint about the restoration job= s being fake! Incidentally, the discovery didn't prompt Ernst into reportin= g the matter to the authorities either.=20 In other cases, like the widely-reported Savings & Loan scandals in several= states, it was the Big Six - such as Touche Ross in the S&L case - who all= owed firms to get away with major fiddles such as changing descriptions of = loans, and ignoring warnings by even the internal auditors. In one Congress= ional hearing, for instance, the Touche partner was talking of a particular= deal which had both an equity and a loan component. What was the amount of= the equity, the Congressman asked. I don't know, replied the Touche partne= r? And they were the auditors. The Enron-Andersen episode shows much remain= s the same. It'll be interesting to see what action the SEC takes against b= oth Enron and Andersen in this case. The veneer of professionalism of the B= ig Six audit firms, needless to say, has been badly damaged.=20 ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE ASIAN AGE, Friday, November 16, 2001 Bidders demand distribution rights, Rajesh Unnikrishnan=20 The two bidders for the 85 per cent stake in Enron promoted Dabhol Power Co= mpany - Tata Power and BSES Ltd have demanded the distribution rights for t= he 1,500 mw power from Dabhol in the Maharashtra state as one of the pre-co= ndition for buying out the stake. The bidders' demand will be one of the ma= in points in the new proposal being prepared by the Indian financial Instit= utions led by the Industrial Development Bank of India for the Maharashtra = state government and the Maharashtra State Electricity Board. This was one = of the main issues which had been discussed between the Indian FIs, Tatas a= nd BSES during their recently concluded meeting in Singapore.=20 Sources close to the development said that both Tatas and BSES have asked a= 1,500 mw power distribution zone preferably Nagpur Distribution Zone or Na= vi Mumbai Distribution Zone to formulate a workable model for DPC project o= nce the equity acquisition gets over. FIs sources said that there have been= some preliminary talks in this direction. " We believe that a workable mod= el would emerge in order to facilitate the take-over," they said. However, = the sources refused to divulge more on the issue. However, a senior executi= ve engineer of MSEB said that the Board is totally out of the picture now. = There is no official communication from the FIs as far as the allocation of= distribution zones are concerned. Once a proposal comes in, MSEB will cons= ider it. Industry sources pointed out that allocating new distribution zone= s will not be a viable idea for MSEB as the financial health of the board h= as been deteriorating for the last couple of years. Navi Mumbai Distributio= n Zone and Nagapur Distribution Zone are considered as the cash- rich distr= ibution zones and giving away any of these zones would further affect the f= inancial health of board.=20 ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE FINANCIAL EXPRESS, Friday, November 16, 2001 MSEB asks Dabhol Power to defer Houston meet in wake of HC order, Sanjay Jo= g=20 The Maharashtra State Electricity Board (MSEB) has dashed off a letter aski= ng the Dabhol Power Company (DPC) to postpone the November 19 board meeting= slated to take place in Houston, in view of the Bombay High Court restrain= ing DPC from issuing a final termination notice. The DPC board among others= proposes to authorise the Enron India managing director K Wade Cline to is= sue the final termination notice to the MSEB. MSEB, which has heaved a sigh= of relief following the Bombay High Court order on a civil suit filed by t= he Indian financial institutions (FIs), have made it clear that the meeting= needed to be postponed as the state principal energy secretary VM Lal, who= is on the DPC board, had been to London to brief the government solicitors= DLA in connection with the ex-parte order passed by the London court restr= aining the state government from filing any civil suit against DPC in India= . MSEB has said that Mr Lal would need some time as he was busy with the Lo= ndon court matter.=20 MSEB sources told The Financial Express that it has told the DPC that there= was no point rushing for November 19, as the high court has already prohib= ited the DPC from issuing a final termination notice "until further orders.= " Sources added that the high court has slated next hearing on December 3. = However, DPC has verbally communicated to the MSEB that as of now the meeti= ng was on. According to DPC, the final termination notice would not be serv= ed at the November 19 meeting but it would simply authorise the Enron India= managing director K Wade Cline for issuing such a notice to MSEB, the sour= ces said. DPC spokesman Jimmy Mogal said "we are unable to confirm or deny.= Mr Cline, who had recently attended the three-day Singapore meet convened = by the Indian financial institutions, has yet to land in Mumbai as he is st= ill camping in Singapore. Mr Cline, who would later go to Houston, New York= and Washington in the wake of Dynegy Inc's decision to acquire Enron Corp,= is likely to return to Mumbai around December 3.=20 The November 19 meeting, which coincides with the expiry of six months sinc= e the issuance of a preliminary termination notice by DPC to MSEB on May 19= , would also take up issues related to the question of financial position o= f DPC relating to the phase-I (740 mw) which has been lying idle since MSEB= 's decision to suspend power purchase from May 29. The meeting would also t= ake up matters related to the debt servicing for phase-II (1,444 mw). The c= onstruction work has already brough to a halt following the termination of = construction contract by the construction contractors from June 17. The DPC= has already defaulted the interest/guarantee fee of Rs 57 crore, which was= due in September/October this year to rupee lenders/guarantors.=20 Maharashtra govt denies permission to attend meet=20 The Maharashtra government has denied its consent to MSEB chairman Vinay Ba= nsal, the state principal energy secretary VM Lal and MSEB technical direct= or Prem Paunikar for attending the November 19 meeting at Houston. It is li= kely that none of the directors representing MSEB and the state government = would be present for the said meeting. MSEB holds 30 per cent equity in the= Dabhol Phase-I while it has not picked up similar equity in the Phase-II i= n view of its precarious finances.=20 ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE ASIAN AGE, Saturday, November 17, 2001 MSEB 'will not' attend DPC meet in Houston=20 Maharashtra State Electricity Board has once again decided not to attend th= e board meeting of Enron-promoted Dabhol Power Company, scheduled to be hel= d in Houston on November 19. "We reserve our right to be present in the boa= rd meeting being held in Houston," MSEB sources said on Friday. This is the= third time that MSEB has refused to attend the board meetings, which were = earlier held in Mumbai. It also did not attend the annual general meeting o= f the energy major held a couple of months ago in the city. "DPC has consis= tently ignored our rebate claim for their material misrepresentation in the= operating capabilities of the plant. Since there is nothing that we can di= scuss we see no point in attending such meetings," sources added.=20 A DPC spokesman, when contacted, declined to comment stating that "it is a = statutory internal matter." MSEB also refused to take cognisance of the Nov= ember 5 asset transfer notice and several monthly bills despatched by DPC s= tating that it had rescinded the power purchase agreement. The first prelim= inary termination notice expires on November 19, the same day as the board = meeting. However, the Mumbai high court has restrained DPC from issuing the= final termination notice till December 3. DPC has also sought lenders' app= roval for issuance of the final termination notice but Indian lenders are y= et to give their consent. (PTI)=20 ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE DECCAN CHRONICLE, Saturday, November 17, 2001 MSEB to skip Enron board meet=20 Maharashtra State Electricity Board has once again decided not to attend th= e board meeting of Enron-promoted Dabhol Power Company, scheduled to be hel= d at Houston on November 19. We reserve our right to be present in the boar= d meeting being held in Houston, top MSEB sources said here on Friday. This= is the third time that MSEB has refused to attend the board meetings, whic= h were earlier held in Mumbai. It also did not attend the annual general me= eting of the energy major held a couple of months ago in the city. DPC has = consistently ignored our rebate claim for their material misrepresentation = in the operating capabilities of the plant. Since there is nothing that we = can discuss we see no point in attending such meetings, the sources added. = A DPC spokesman declined to comment on the matter.=20 ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE INDIAN EXPRESS, Saturday, November 17, 2001 Parleys on Enron stake sale continue; BSES, Tata Power begin due diligence WHILE more skeletons are tumbling out from Enron's cupboards in Houston, he= ctic negotiations are currently on between Indian financial institutions an= d power firms BSES and Tata Power for the sale of Enron's Dabhol power proj= ect. Mumbai-based power companies BSES Ltd and Tata Power have kicked off t= he process of carrying out due diligence - to find out the true value of th= e project and economics of the takeover - of the troubled $2.9 billion Dabh= ol Power Company (DPC). Facing a default on its Rs 6,190 crore loan to DPC,= Indian financial institutions are pushing the takeover plan seriously with= Enron and bidders. They are also looking out for other buyers besides DPC = and BSES.=20 BSES has already announced its decision to appoint internal and external ta= sk forces for carrying out due diligence of the project after signing a con= fidentiality agreement with DPC. Tata Power is also negotiating to work out= the modalities for signing a confidentiality agreement for carrying out du= e diligence. "Indian institutions are insisting for a minimum reserve price= of $700 million (around Rs 3,360 crore) for the Enron stake. Now the ball = is in the courts of BSES and Tata," said an institutional source. However, = both BSES and the Tatas are not in favour of paying more than $400 million = for the project due to huge liability including to the Indian Customs.=20 BSES chairman and managing director RV Shahi had already gone on record say= ing that the company has shown its interest to acquire 85 per cent stake (6= 5 per cent of Enron and 20 per cent of GE and Bechtel) in the Dabhol projec= t at the recently concluded Singapore meeting convened by the Indian financ= ial institutions (IFIs). The rest of the equity would be held by MSEB which= is the only buyer of power from Dabhol Power. Shahi said until the complet= ion of due diligence, BSES expects concrete formulations of various types o= f incentives/concessions which should be available from the Government of I= ndia, Government of Maharashtra and lenders. "Outcome of due diligence with= concrete proposals of incentives/concessions will enable BSES to assess th= e valuation for the Dabhol project. It is not a workable proposal for the c= ompany to accept without due diligence," he added. Bidders are keen that al= l the steps should be required to significantly reduce the generation tarif= f. "Unless that happens it will be difficult to positively look at the oppo= rtunity," said an official.=20 But it's still not clear whether Dynegy will support the exit plan. "Though= the takeover has been announced, the process will be completed only by the= third quarter of next year," Enron circles said. Maharashtra State Electri= city Board (MSEB) which holds 15 per cent stake in DPC is trying hard to pr= event any exit before the stake sale. It is learnt that the two bidders are= keen for a reduction in per unit tariff at Rs 2.70, a cut in interest rate= , exemption from payment of minimum alternate tax, providing mega power sta= tus for the Dabhol project and separation of liquefied natural gas (LNG) fa= cility from the power project. These issues were considered at the recent S= ingapore Singapore meet. "The project will continue to languish if there is= no possibility of providing power at an affordable tariff by adding value = to the equity," FI sources add.=20 According to sources, both equity holders and lenders would stand to loose = enormously as both would have to take hits and cuts. "The existing equity p= romoter would have to be prepared to take a substantial cut in the equity v= alue without which the tariff would not come down to a reasonable level," s= ources said. They have stressed the need for a payment security mechanism f= or the sale of power. "The Government of Maharashtra will have to take a po= licy decision to allot suitable distribution circles of above 1,500 mw capa= city load without which the project will remain unviable," sources said. Th= e FIs and utilities have demanded that the Centre would have to provide exe= mption from the payment of minimum alternate tax. "Such an incentive is nee= ded as tax is passed on to the consumers. The exemption in MAT will ultimat= ely help in the reduction of tariff," sources said.=20 The package also envisages substantial reduction in the interest rates by l= enders, conversion of foreign debt into rupee debt so that the price of pow= er would not get affected following foreign exchange fluctuations. The IFIs= , DPC, Tata Power and BSES have also suggested a need for a suitable morato= rium period of 15 years or more. They have unanimously called for providing= a mega power status to the Dabhol project in a bid to get concessions in t= he customs duty. MSEB, which has heaved a sigh of relief following the Mumb= ai high court order on a civil suit filed by the Indian financial instituti= ons, have made it clear that the meeting needed to be postponed as the stat= e principal energy secretary VM Lal, who is on the DPC board, had been to L= ondon to brief the government solicitors DLA in connection with the ex-part= e order passed by the London court restraining the state government from fi= ling any civil suit against DPC in India. MSEB has said that Lal would need= some time as he was busy with London court matter. ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE HINDU BUSINESS LINE, Sunday, November 18, 2001 It is deal-making time in Dabhol, D. Sampathkumar THE Enron-promoted Dabhol Power Company continues to navigate choppy waters= , in its quest for the safe harbour of unhindered domestic operations. If t= he uncertainty over cancellation by the Maharashtra State Electricity Board= (MSEB) of its power purchase agreement with the company is not enough, the= re comes the news that MSEB, a 15 per cent stakeholder in the company, refu= ses to participate in the deliberations of the company's Board. Its tactica= l compulsions in this regard are entirely understandable. It does not want = to be even remotely seen as party to decisions of the company that could co= mpromise its claims against the company at a later date. But the continuing= standoff between the MSEB and the overseas promoters notwithstanding, a un= ique combination of circumstances has provided the right conditions for an = amicable resolution of the messy tangle that the project is enmeshed in, at= the moment. Each of the parties with a stake in the project has its own co= mpulsions in seeking a resolution of the dispute and thereby put an end to = the uncertainties facing them vis-a-vis their financial exposure to the pro= ject. For all the bravado, the basic fact remains that none of the parties = involved in the deal can afford to dig in its heels and refuse to go along.= Leading the list is Enron, the project's principal promoter. Its claims to= being the injured party in the game of political football that the project= has become, has lost some of its strength in the wake of troubles confront= ing it at home. Its non- energy business is largely in tatters and controve= rsies over accounting policies and disclosures of performance, are developm= ents it could have done without in its quest for an image of purity of a fr= esh driven snow.=20 Adding a new dimension to the issue is the news of takeover of Enron by Dyn= egy Inc., a much smaller rival in the industry but without any of the exces= s baggage of questionable investments of the former. This is a positive dev= elopment. Dynegy would have its hands full managing the merged business wit= h all its inherent complexities. The position domestic financial institutio= ns find themselves in, in this imbroglio, is even more untenable than that = of the overseas promoter. Servicing of debt would be the first casualty in = any termination of the commercial contract between the Maharashtra Electric= ity Board and Dabhol Power Company. With their balance sheets in a precario= us position the implications for provisioning for non-performing assets tha= t a default occasions are horrendous. As for the Central Government, its po= sition as merely the counter guarantor of MSEB's payment obligations under = the power purchase agreement does not offer it much room for comfort. Also,= while in theory, the Centre can pay and recover it out of the finances dev= olving on Maharashtra from the Centre, in practice, this may prove to be po= litically infeasible. As it is, some of the more prosperous states in the f= ederal set-up feel they are contributing far more to the cause of balanced = regional development than they can reasonably be credited with. The extract= ion, by way of counter-guarantee obligations, is certain to stoke fissiparo= us regional sentiments besides handing out a stiff price to the party in po= wer at the Centre when it is election time in that region.=20 What, then, could be the contours of a possible deal among the interested p= arties? If the deal is to be sold by each party to its constituents, it mus= t be seen as a fair one and yet recognise the harsh commercial realities th= at characterise the present situation of each of the parties to the dispute= . The project with its integrated structure of power generation, port handl= ing and regasification can no longer be sustained if domestic bidders are t= o be roped in as new promoters. For then, the financial outlay implicit in = a project of such a composite nature is beyond the capability of most domes= tic players in the power utility business. It hence needs to be rebundled i= nto two components - namely, the generation assets and support infrastructu= re such as gas terminal and regasification plant.=20 Second, differential treatment in the valuation of assets in the two phases= of the projects is a must. Enron, after all, is in possession of a counter= -guarantee for the investment made in the first phase of the project. Hence= , the broad principle of international market price for assets taken over w= ill have to be tempered by the recognition that insofar as the first phase = is concerned, the valuation is not so much for pieces of generating equipme= nt as for a stream of guaranteed cash flows from a commercial contract. The= political education expenses that Enron has admittedly incurred cannot com= pletely be ignored as some Indian entities appear to have been the benefici= aries. Sensitivity to these aspects provides a possible framework for resol= ving the dispute. ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE ECONOMIC TIMES, Wednesday, November 14, 2001 'DPC sale to be decided by Enron, Tatas, BSES'=20 THE INDUSTRIAL Development Bank of India on Monday said the selling price o= f the erstwhile US energy major Enron's troubled Dabhol Power Company will = be decided by the two city-based utilities Tata Power and BSES with the mul= tinational through `mutual negotiations'. "It is expected that further step= s in this regard will be initiated by DPC, BSES and Tata Power in the next = few days to begin the due diligence, after signing a confidentiality agreem= ent with DPC," IDBI chairman and managing director P P Vora said in a state= ment here. He said Indian financial institutions including IDBI, ICICI, Sta= te Bank of India and IFCI, who have an exposure of over Rs 6,000 crore in D= PC, along with the Centre, MSEB and Maharashtra government, could consider = certain incentives to prospective new sponsors with a view to making the pr= oject more attractive and bring down the tariff to a reasonable level. "Bri= ef features of an incentive package prepared by a committee appointed by th= e Centre were also discussed," Vora said. DPC officials also clarified various technical and operational issues, whic= h will need to be resolved for smooth management transfer and successful op= eration of the plant by the new sponsors, it said. The three day Singapore = meeting of the FIs with DPC and the private utilities also included officia= ls from National Thermal Power Corporation and Central Electricity Authorit= y to to provide technical advice, the Chairman informed. The issues discuss= ed included completion of the 1,444 mw phase-II of the project and the cost= thereof, sale of Enron, Becthtel and GE's shareholding in DPC (aggregating= 85 per cent of total capital) to either of the prospective new sponsors li= ke BSES and Tata Power."Based on these discussions and clarifications provi= ded by IFIs and DPC, both BSES and Tata Power have expressed deep interest = to purchase the 85 per cent shareholding of DPC subject to certain conditio= ns, inter-alia, on price of shares and other related technical and operatio= nal issues," Vora said. After their return from the three-day Singapore meet, a senior FI official = had confirmed that "the road map was now clear. Tata Power and BSES will fo= rmally look into the financial books of DPC, its loans, sponsors and other = assets and most importantly the legal wrangles and then make a final bid fo= r the distressed company". Interestingly, the erstwhile energy major had in= formed the FIs a few days ago that it was ready to take a 30 per cent hit o= n its equity at around $850 million from the initial offer price of $1.2 bi= llion. However, both Tata Power and BSES have demanded a 50 per cent reduct= ion in Enron's offer. (PTI)=20 ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE TIMES OF INDIA, Thursday, November 15, 2001 Tatas, BSES keen to acquire DPC=20 Indian power generation companies Tata Power Company Ltd and BSES Ltd have = expressed interest in acquiring the 85 percent stake held by Enron and its = associates in the controversial Dabhol Power Company. "Both BSES and Tata P= ower have expressed deep interest to purchase the 85 percent shareholding h= eld by Enron and its associates. They would also like to conduct due dilige= nce of the project," said a statement Tuesday by the Industrial Development= Bank of India (IDBI), the lead lender to the project. The statement also s= aid lenders and owners of Dabhol held a three-day meeting last week in Sing= apore that was "fruitful and expected to pave the way towards the solution = for the various issues." US-based Enron has said expects about $1 billion f= or the stake. Enron, along with the Maharashtra State Electricity Board and= the state government, had jointly set up the power plant in the western st= ate, which stopped generating electricity after MSEB failed to pay for powe= r from the 1,284 megawatt project. DPC has served an "asset transfer notice= " to the MSEB for the valuation of the company's assets in order to sell th= em off. IDBI and other lenders such as the State Bank of India, ICICI and I= FCI have lent more than Rs 6000 crore to the project and filed a lawsuit ag= ainst DPC to ensure they get their funds back. ( AFP ) ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE ECONOMIC TIMES, Sunday, November 18, 2001 Govt not to encash gurantees against DPC=20 IN AN ad-interim order, Mumbai High Court has restrained the Centre and cus= toms authorities from encashing guarantees undertaken by State Bank of Indi= a in regard to customs duty payable by Enron-promoted Dabhol Power Corporat= ion for importing equipment to build liquified petroleum gas terminal in it= s Dabhol plant. The ex-parte injunction was granted by justice D G Karnik o= n November 15 on a petition filed by DPC challenging the show cause notice = issued by customs authorities asking the company to pay Rs 245 crore as imp= ort duty on the equipment. The court also restrained the SBI to make paymen= t under the guarantees undertaken by it on behalf of DPC. The judge, howeve= r, allowed DPC to file an appeal before customs, excise and gold appellate = tribunal within a period of four weeks from the date of his order (November= 15). He also ruled that the ex-parte injunction order shall automatically = stand vacated from December 15 subject to the orders that may be passed by = the tribunal. Meanwhile, the court directed DPC and respondents to keep the bank guarante= e alive and enforceable. It also ordered that notices be issued to the resp= ondents after four weeks. On a show cause notice issued by the customs depa= rtment, the adjudicating officer had ruled that the power producer had wron= gly availed of the customs duty concession to import equipment needed for L= PG project. According to him, the concession was available only for the pow= er plant and not for the LPG facility. He had also imposed a penalty of Rs = 45 crore taking the total liability of DPC to Rs 290 crore. DPC, on the oth= er hand, contended that LPG facility was essential to the power project and= was thus eligible for concession in customs duty.( PTI ) ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE ECONOMIC TIMES, Friday, November 16, 2001 FIs for allotting distribution zone to DPC buyer, Anto T Joseph IDBI-LED financial institutions are putting together a proposal to be prese= nted to the state government and Maharashtra State Electricity Board, under= which the buyer of Enron's Dabhol Power Company would be allotted a distri= bution zone. The new owner would also be allowed to sell electricity direct= ly to consumers, if the proposal is accepted. This proposal formed the basi= s of discussions during the recent three-day Singapore meet between IFIs, D= PC and the two utilities in the fray for buying Enron out of DPC, Tata Powe= r and BSES. If the proposal doesn't find favour with MSEB and the governmen= t, it will be a setback for domestic lenders, who would be forced to piece = together another workable model. FI sources said offering a profitable distribution zone and allowing third-= party sale of electricity was a pre-condition set by both the contenders. P= rimarily electricity distribution utilities, both Tata Power and BSES will = also evaluate one of the lucrative distribution zones of Navi Mumbai, Thane= or Pune as part of the package deal. ET had on October 6 reported that the= domestic lenders had mooted a similar proposal, with the help of the Centr= al Electricity Authority. Maharashtra State Electricity Board had then reje= cted the proposal to part with any part of its distribution network to any = private power utility. Since then, things have moved fast and mostly in fav= our of the domestic lenders with the Union government and the power ministr= y supporting the proposal. "This is a payment security mechanism, thrown up= by Indian lenders. If MSEB buys the power from phase I (744 mega-watt), th= ere needs to be a buyer for the rest of 1440 MW produced by the second phas= e. This could be a combination of two - handing-over of a MSEB-owned distribut= ion circle and selling power directly to a few industries," said a BSES off= icial. Another option of NTPC buying power from the plant was also discusse= d at the Singapore meet. MSEB chairman Vinay Bansal told ET that no such pr= oposal has ever come to the board from domestic lenders. "Tata Power has be= en demanding an extension of their distribution areas. But we can't afford = to oblige because that would imbalance our receivables," said Bansal. As th= e FI officials pointed out, the proposal involves all involved parties maki= ng sacrifices to salvage the project. While the sacrifice would be in the f= orm of lower interest rates for lenders and selling its stake for an amount= below its initial investment by Enron, MSEB would have to sacrifice a dist= ribution zone. MSEB, however, says that once a lucrative zone is chopped off from its dist= ribution area, it will lead to MSEB's cashflows declining drastically. "The= se economics are preventing us from giving away any distribution areas," sa= id a MSEB official. Over the last two years, Maharashtra State Electricity = Board had tried to unbundle its functions and privatise distribution circle= s by appointing IL&FS and the Administrative Staff College of India of Hyde= rabad. Both IL&FS's proposal to form a joint venture to privatise Navi Mumb= ai, and ASCI's Maharashtra Electricity Reform Bill are currently on the bac= kburner.
|