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Enron-promoted Dabhol power project opens, finally

Gautam Chakravarty in Guhagar, Maharashtra

Union Power Minister P R Kumarmangalam today dedicated the first phase of the Dabhol Power project (740 mega-watts) to the nation in presence of Maharashtra Chief Minister Narayan Rane, Deputy Chief Minister Gopinath Munde and US ambassador to India Richard Celeste.

Inaugurating the $ 1.078 billion, phase-1 of the Dabhol Project promoted by Enron International of the USA, Kumarmangalam said that there was a need for greater interaction between public sector and private sector in implementing such projects in the country. ''We need foreign investment for our economic growth and social prosperity'', he said.

Appreciating the work done by Enron in association with Maharashtra State Electricity Board for implementing the project ahead of the scheduled time, he said Enron is "welcome to our energy and gas sectors since the country would need huge amount of gas in future for various projects".

But, the cost of buying these gases must be at a competitive rate, he said. The Union power minister hinted that Enron would soon face competition in power and gas sectors for other multinational companies.

He said his ministry would soon announce global tender next month for two LNG-based power projects of 2,000 mega-watts each on western coast.

The plant which started its commercial production on May 13 is the only independent power project in India in which the MSEB holds around 30 per cent equity.

Dabhol Power Company is a joint venture project among Enron (50 per cent), the MSEB (30 per cent), Bechtel Enterprises (ten per cent) and GE Capital (ten per cent). It has weathered several court cases, cancellation, arbitration and re-negotiation in the last six years.

Since the construction started in 1995, DPC has invested about $ 3 billion at and around the project site which include construction of a school, hospital, roads, bridges and a jetty.

''Enron is committed to offer reliable, competitively priced electricity that would help meet India's growing energy requirements,'' said Joseph Sutton, chairman and CEO of Enron International.

Dabhol Power will supply electricity to the MSEB at Rs 3.01 per unit under a 20-year power purchase agreement.

UNI

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