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Enron Mail |
THE HINDU BUSINESS LINE, Tuesday, November 27, 2001
A.V. Birla 'not keen' on Dabhol=20 Similar story also appeared in the following publications: THE FINANCIAL EXPRESS, Tuesday, November 27, 2001 Birlas not to pursue DPC investment plan THE TIMES OF INDIA, Tuesday, November 27, 2001 Birla group says no interest in Enron's DPC=20 ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE FINANCIAL EXPRESS, Tuesday, November 27, 2001 DPC board meet on course despite MSEB dissent note, Sanjay Jog ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE ECONOMIC TIMES, Tuesday, November 27, 2001 MSEB denies sops to DPC buyer=20 ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ BUSINESS STANDARD, Tuesday, November 27, 2001 November 30: The countdown begins for Dabhol, S Ravindran Mumbai=20 ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE ECONOMIC TIMES, Tuesday, November 27, 2001 Life after Enron ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE FINANCIAL EXPRESS, Tuesday, November 27, 2001 ONGC board meet holds key to Panna Mukta operatorship, Prasanna Upadhyay ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE TIMES OF INDIA, Tuesday, November 27, 2001 Man arrested for issuing e-mail threat to Enron ( carried only by the onlin= e edition) ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE HINDU BUSINESS LINE, Tuesday, November 27, 2001 A.V. Birla 'not keen' on Dabhol=20 THE A.V. Birla group today said it is not interested in buying a stake in t= he Enron-promoted Dabhol Power Co (DPC), although it appears to have studie= d the power project. In a statement, the group said it has ``looked'' at th= e Dabhol project but is ``not interested in pursuing an equity investment i= n DPC.'' Currently, financial institutions are considering proposals put fo= rth by Tata Power Co and BSES Ltd to pick up Enron's 65 per cent stake in D= PC. However, Ms Jayawantiben Mehta, Union Minister of State for Power, has = said that any third party stepping in to bid for Enron would be welcomed by= the Government as that would increase competition, thereby reducing price.= Ms Mehta was responding to queries by mediapersons on the reported entry o= f a third bidder for DPC on the sidelines of a banking and finance seminar = here. ``Our only mission is to increase generation of power and make it ava= ilable at cheaper prices. Buying power from Enron is an option only if the = power tariff is reasonable,'' Ms Mehta said.=20 Regarding the sale of Enron's stake in DPC, she said there was a specific t= ime-frame assigned for completing the due diligence process. ``Once the pro= cess is complete it will not take time to finalise a deal,'' she said. Talk= ing about the disbursements for the Accelerated Power Development Project (= APDP), Ms Mehta admitted to delays in disbursements earlier but the Governm= ent has learnt from these mistakes and will try to make the process quicker= , she said. She added, ``The Government has decided to allocate Rs 113.95 c= rore to Bombay Electricity Supply and Transport Company (BEST) for the year= 2001-2002 for transmission, distribution and convergence purposes. The dis= bursements will be made shortly. A special account will be opened for these= funds with the State Government. This money is to be used within a period = of one year but BEST will be given additional funds as and when they need i= t.'' The total allocation for Maharashtra under APDP is more than Rs 300 cr= ore.=20 ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE FINANCIAL EXPRESS, Tuesday, November 27, 2001 DPC board meet on course despite MSEB dissent note, Sanjay Jog Dabhol Power Company (DPC), notwithstanding the dissent note filed by the M= aharashtra State Electricity Board (MSEB), is firm on holding its board mee= ting on November 30 in London to authorise Enron India managing director K = Wade Cline to issue a final termination notice to the MSEB. MSEB chairman V= inay Bansal and state principal secretary VM Lal, who are directors on the = DPC board, have decided not to attend the meeting. DPC spokesperson Jimmy M= ogal confirmed that the DPC board meeting would take place as per schedule.= "The November 30 meeting will take place as it is a statutory company law = requirement," he told The Financial Express. Mr Mogal, however, declined to= comment on the receipt of a dissent note from the MSEB blaming DPC for its= mismanagement which led to a situation for the issuance of a final termina= tion notice. According to MSEB sources, it has questioned the holding of No= vember 30 meeting especially when it had cancelled the previous board meeti= ng scheduled for November 19 in London at the last minute. MSEB has also de= manded a change in the venue of the meeting from London to Mumbai. The stat= e electricity board has also taken an objection for the ensuing meeting esp= ecially when the Bombay high court has already restrained DPC from issuing = a final termination notice to it in its November 9 ad interim order granted= on a civil suit filed by financial institutions. MSEB has reiterated its claim that it was DPC's successive material misrepr= esentation and default on the availability of power which led to the presen= t situation. Had DPC corrected its capacity availability after the MSEB imp= osed rebate for the first time in February, the situation would not have re= ached this stage, sources added. MSEB also blamed DPC for non-payment of re= bate of Rs 401 crore imposed by it for the default on the availability of p= ower on January 28. Furthermore, it also defaulted on February 13 and March= 29 and failed to pay successive rebates revised thereafter. The November 3= 0 meeting would also take up issues related to asset preservation, financia= l position of phase-I, debt servicing of phase-II and opening of letter of = credit for the charter. Meanwhile, MSEB technical director (corporate plann= ing) Prem Paunikar, who is also on the DPC board, has resigned for personal= reasons. He will be relieved on November 29. Mr Paunikar will be replaced = by Mr Gurcharan Singh, who is currently in charge of hydrogrid. ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ BUSINESS STANDARD, Tuesday, November 27, 2001 November 30: The countdown begins for Dabhol, S Ravindran Mumbai=20 Global lenders to the Enron-promoted Dabhol Power Company (DPC) are meeting= in London on November 30 to consider authorising the firm to serve a final= termination notice on the Maharashtra State Electricity Board (MSEB). On t= he same day, the DPC board will meet in London to consider authorising mana= ging director K Wade Cline to serve the final termination notice on MSEB. E= ven if Cline gets the nod from the board, he will not be in a position to s= erve the notice unless the lenders give the go-ahead. "We have decided to m= eet on November 30 as it is convenient for us. The DPC board meeting is a p= ure coincidence," sources in the lenders' consortium said. The meeting assu= mes significance as it is being held in the backdrop of a Mumbai High Court= injunction restraining DPC from serving the final termination notice. The = lenders are planning to consult their lawyers, White Case, on the feasibili= ty of such a move. The steering committee of the lenders comprising Credit = Suisse First Boston, Citibank, Bank of America, OPIC, ANZ Investment Bank a= nd the Industrial Bank of India will meet to take stock of the situation.= =20 ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE ECONOMIC TIMES, Tuesday, November 27, 2001 MSEB denies sops to DPC buyer=20 THE MAHARASHTRA State Electricity Board has turned down IDBI-led FIs' plea = to slice out one of its distribution circles to gift to the buyer of Enron'= s Dabhol Power Company as part of a payment security mechanism. This has th= e potential to derail the ongoing discussions with the two prospective bidd= ers as Tata Power and BSES are unlikely to proceed with the deal without su= ch a viable model in place. "So far, all the discussions between the FIs an= d the utilities were based on the assumption that MSEB and the state govern= ment would agree to this lollipop," said a senior FI official. MSEB chairma= n Vinay Bansal confirmed he had received a proposal from FIs. "The model is= not agreeable to us. We simply can't afford to part ways with any of our d= istribution circles. That will jeopardise MSEB's cashflows." ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE ECONOMIC TIMES, Tuesday, November 27, 2001 Life after Enron OBITUARIES for the Dabhol Power Company (DPC) were premature. With every pa= ssing week, it appears that the 2,100 MW power project in Maharashtra is li= kely to be reincarnated in a new, improved avatar. The domestic troubles of= Enron, the Houston-based energy giant that owns 65 per cent of DPC equity,= have actually made DPC more attractive to local buyers. The Aditya Vikram = Birla group now joins BSES and Tata Power as suitors for the stake of Enron= , and maybe the additional 20 per cent equally owned by GE and Bechtel, whi= ch are also keen to exit. Enron initially valued DPC equity at $1.1 billion= . However, it has become clear that it will have to take a discount on this= : the final figure could come down to $700 million or even less. The prospe= ct of buying out a state-of-the-art power plant at a very attractive price = has attracted companies like BSES, Tata Power and now, the AV Birla group.= =20 What Enron needs now is cash: finances of the Houston giant are shaky and i= t has to arrange credit for nearly $700 million debt quickly. Given that, I= ndian buyers can winkle out an even bigger discount by agreeing to pay the = money up front, instead of in instalments. Inevitably, lenders will also ha= ve to write down interest on debt, or even take some writeoffs to bring deb= t in line with lower equity valuation. Once the financial restructuring is = complete, DPC power will become affordable. Or will it? Arguably, electrici= ty has been India's most reform-proof sector. This resistance to change has= deep roots: in administrative collapse, populist politics, the dominance o= f the public sector at the Centre and states; in corruption, regulatory fai= lure or apathy and with consumers who are used to getting power free. To ma= ke DPC - or any power project - viable in the long run, consumers have to s= tart paying for electricity. Failing that, utilities should cut them off. T= his will need a great deal of support from state administrations. SEBs have= to be privatised. If the new Electricity Bill is made into law, states wil= l have the freedom to privatise distribution without amending local laws, I= PPs will be able to sell power to consumers. This is a large reform program= me which will need serious political will at all levels of government to im= plement. Yet, experience has shown that nothing less will work.=20 ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE FINANCIAL EXPRESS, Tuesday, November 27, 2001 ONGC board meet holds key to Panna Mukta operatorship, Prasanna Upadhyay The thorny issue of the operatorship rights for the Panna Mukta Tapti oil a= nd gas fields is coming to a head as the Oil and Natural Gas Corporation (O= NGC) board is slated to meet on Tuesday to discuss the issue threadbare. Th= e hopes of British Gas (BG), which has decided to buy out the 30 per cent E= nron stake in the oil fields, rests largely on the board meeting, as BG has= made it clear that it will go through the deal only if it gets sole operat= orship. However, ONGC, which holds 40 per cent in the fields, and Reliance,= the other 30 per cent stakeholder, have both pitched for operatorship righ= ts. Only if the ONGC board agrees to allow BG to take the rights can the de= al be carried forward from BG's end. ONGC chairman Subir Raha could not be = reached for comments by The Financial Express despite several attempts. According to sources close to BG, the company is confident that ONGC would = agree to transfer of operatorship from Enron to BG. These sources said that= BG would pick up Enron's stake in the oil fields, subject to transfer of o= peratorship and till the issue was resolved the question of paying up the $= 388 million for the deal did not arise. While there is talk that Enron may = be wanting BG to hurry up with the payment for the deal in view of Enron's = global problems, there was no independent confirmation of this from either = BG or from Enron. An official spokesperson of Enron in India declined to co= mment on the issue. "The company has clarified that the deal is subject to = operatorship otherwise it is off from our side," the sources close to BG sa= id. While sources close to BG added that Reliance has agreed for transfer o= f operatorship from Enron to BG, a Reliance spokesperson, when contacted, c= ategorically denied that Reliance had given a green signal for transfer of = the operatorship to BG.=20 While BG is confident that ONGC would agree for transfer of operatorship to= it, ONGC's unions have said that the oil major has enormous experience in = the field and had also discovered the fields. According to sources, to reso= lve the issue, the suggestion of joint venture operatorship was raised from= some quarters, so that all the three joint venture partners could be inclu= ded in the operatorship. Another suggestion was that the three fields shoul= d be distributed to the three partners. However, BG is sticking to its dema= nd for sole operatorship. The fields produce around 300 cubic metres of gas= and 29,000 barrels of oil per day. Enron, which has been taken over by Dyn= egy Inc has decided to withdraw from oil and gas in India as part of its gl= obal strategy.=20 ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ---------------------------------------------------------------------------= ------------ THE TIMES OF INDIA, Tuesday, November 27, 2001 Man arrested for issuing e-mail threat to Enron ( carried only by the onlin= e edition) PUNE- If you're thinking of sending scary, anonymous emails, think again.Th= e police are fast catching up on the technology to trace such mails. On Fri= day, the Ratnagiri police arrested Pune-based computer professional Habibud= din Sheikh 20). A former employee of the Dabhol Power Corporation DPC) Shei= kh had sent an email threatening to blow up DPC's Guhagar plant. According = to the Ratnagiri police, DPC received the threatening mail last month.The c= ompany was being targeted because it was a venture of the American giant En= ron, the mail said. Superintendent of police Vinaykumar Chaube immediately = formed a special team and tracked the mail down to a cybercafe in Wanowrie = in Pune. The cybercafe records revealed that Sheikh had used the cyber cafe= at the time and day on which the mail was received by DPC.The investigator= s were already working on the hunch that the mail must have been the handiw= ork of one of the 1,000 workers retrenched by the company. Sheikh's handwri= ting in the company's records too matched.
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