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Enron's Dabhol power plant to light up Maharashtra by March-end

The financial closure for the second phase of the multi-crore 1440 mega-watt Dabhol Power Plant constructed by US transnational Enron Corporation will be completed within the next 30 days, according Enron vice-chairperson Rebecca Mark.

After meeting Maharashtra Chief Minister Narayan Rane in Bombay, Mark expressed her satisfaction over the first phase of 740 MW power plant.

Electricity from the plant will flow into India's western power grid by March-end. The cost of the electricity has been tentatively fixed at around Rs 3 per unit. However, the rate is subject to minor changes at the time of the actual consumption.

Mark was accompanied by Enron's chairman Kenneth Lay and other board members. The board visited the plant at Dabhol in Ratnagiri district of Maharashtra and reviewed the progress of the work at the site.

She denied news reports that Enron violated human rights at the construction site.

Narayan Rane said the Enron board agreed to keep its promise of constructing schools, hospitals, community centre, polytechnic college, roads, etc for the benefit of locals in Ratnagiri.

Rane also agreed with Mark that there was no violation of the human rights by the company. The project work is also satisfactory, he added.

However, Asoke Basak, chairman of the Maharashtra State Electricity Board, who is one of the three appointees on the Enron executive board, said he has visited the site and the social infrastructure as promised by the company is inadequate.

Enron's earlier assurance to offer employment to 200 local people was not fulfilled. Only hundred locals were employed in Dabhol plant due to lack of skilled labour in the area, he added.

The promised industrial training institute has not yet come up. Enron is likely to start it by the next academic year, he disclosed.

As per the power purchase agreement for the first phase, the MSEB has equity participation of 30 per cent in the joint venture. The MSEB will get 30 per cent profit earned by Enron through generation of electricity, he added.

Basak said there have always been complaints of load sheddings and therefore there will never be excess generation of power.

The 740 MW first phase cost worked out to $ 1.8 billion while the 1,440 MW second phase is expected to cost $ 3.5 billion.

UNI

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Maharashtra