NEWSLINKS
INDIA & THE WTO
NEW GOVERNMENT
COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES
SEARCH REDIFF

Greens step up war against Cogentrix; company says no change in pull-out move

The Environmental Support Group and the Janajagriti Samithi have appealed to Prime Minister A B Vajpayee not to extend counter guarantee to the proposed 1000 mega-watt power project near Mangalore.

"Not only will this demonstrate the resolve to uphold the rule of law but will also serve in substantiating the oft-repeated claim that environmental and social justice considerations are not subordinate to other considerations, especially foreign investment," the two organisations said in a statement issued in Bangalore on Monday night.

Despite the Supreme Court's verdict setting aside the judgement of the Karnataka high court ordering a probe into the charges of kickbacks allegedly paid by Cogentrix, they said they would continue to oppose the location of Cogentrix and other related projects in the environmentally sensitive region of Dakshina Kannada.

They would also seriously pursue the contempt proceedings initiated in the high court against the Union environment ministry for not having complied with the direction of the court judgement in this regard.

Cogentrix changes stance, says it won't review pull-out

Meanwhile, the absolution of the Mangalore Power Company, promoted by the United States-based Cogentrix, and the China Light and Power International from graft charges by the Supreme Court has not changed Cogentrix's decision to pull out from the project.

Though the company promoters expressed happiness over the Supreme Court verdict, they, however, indicated that the situation does not change their decision.

Meanwhile, MPC managing director Ron Somers, who held discussions with Union Power Minister Rangarajan Kumaramangalam after the Supreme Court verdict in New Delhi, will arrive in Bangalore on Tuesday evening to meet Karnataka Chief Minister S M Krishna.

Company sources said the ball was now in the chief minister's court to get the necessary clearances. Even if the company reconsidered its stand owing to pressure, the sources categorically ruled out opening up of the Power Purchase Agreement for any further renegotiations.

On the revision of the PPA, the company stood firm on the Union Cabinet's decision of October 10, 1996 when it had in principle cleared the counter-guarantee. It also established specific parameters for the project including station heat rate, auxiliary power consumption and income-tax.

The project could achieve financial closure within six months after the counter-guarantee was issued by the Centre, the sources said.

The state cabinet had already approved the PPA and the state guarantee on October 24, 1997 and the state support agreement for execution and delivery was signed between the company and the state government and the Karnataka Power Transmission Corporation (then KEB) on November 17 the same year.

If Enron can overcome problems, so can Cogentrix, says Krishna

Karnataka Chief Minister S M Krishna will meet Mangalore Power Company's MD Ron Somers on Wednesday to discuss the proposed 1000 mega-watt power plant at Nandikoor in Dakshina Kannada in the light of the Supreme Court judgement exonerating the company from corruption charges.

He said Somers spoke to him over telephone on Monday and discussed the issue including the meeting he had with the Union Power Minister Kumaramangalam.

"I don't know what he (Somers) has in his mind. I will be able to throw more light on the subject only after I meet him. He has conveyed my views to the board of directors on starting the project,'' Krishna added.

He said if Enron could overcome environmental problems in Maharashtra, even Cogentrix could overcome them in Karnataka. On the agitation by the environmentalists against the project, he said the government was also equally concerned about protection of environment. However, the process of development of the state should also be kept in mind, he felt.

When pointed out that two more cases relating to the same project were pending before the courts, he said this was the major hurdle which had come in the way of the Centre giving clearance to the project. He said he did not know about the other cases.

Centre has no hesitation in clearing Cogentrix, says Sinha

Meanwhile, in New Delhi, Finance Minister Yashwant Sinha informed the Rajya Sabha that the government would have no hesitation in clearing the 'so-called fast track' Cogentrix project as the Supreme Court had given its judgment.

Replying to the issue raised by H Hanumanthappa of the Congress, Sinha said the government had cleared all the fast-track projects except Cogentrix because it was sub judice. Now that the issue is no longer sub judice, the government is free to act.

He said his counterpart in the power ministry had already requested Cogentrix to reconsider the pull-out decision.

Hanumanthappa alleged that the Power Purchase Agreement was revised thrice after 25 sittings and it was time that the government acted fast. He said the court too 'awoke' only after Cogentrix's decision to withdraw through the process of hearing was complete a year ago.

UNI

ALSO SEE

Cogentrix may 'reconsider' pull-out decision

SC sets aside HC order on CBI probe into Cogentrix 'kickbacks'

Redtape-weary Cogentrix abandons Mangalore power project

Kumaramangalam is scuttling Cogentrix, alleges Patel

Cogentrix told to win friends and influence people

Anti-Cogentrix body urges cancellation of project

Karnataka Janata Dal urges Centre to clear Cogentrix

More stories on Cogentrix in the Karnataka home page

Search Rediff for news reports on Cogentrix

Business