THE TIMES OF INDIA, Wednesday, November 21, 2001
DPC sponsors meet next week for due diligence talks 

Similar story also appeared in the following publications:

THE HINDU BUSINESS LINE, Wednesday, November 21, 2001
DPC sponsors to meet next week

THE FREE PRESS JOURNAL, Wednesday, November 21, 2001
DPC sponsors meet in US next week to discuss due diligence
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THE ECONOMIC TIMES, Wednesday, November 21, 2001
BSES inches forward in DPC race 
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THE HINDUSTAN TIMES, Wednesday, November 21, 2001
Enron in talks to sell off data centre, Arun Kumar 
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THE ECONOMIC TIMES, Wednesday, November 21, 2001
Enron restates Q3 earnings 
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THE FINANCIAL EXPRESS, Wednesday, November 21, 2001
Maharashtra govt objects MSEB's 19% tariff hike, Sanjay Jog 
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THE FINANCIAL EXPRESS, Wednesday, November 21, 2001
State opposes MSEB proposal on 19 per cent power tariff hike, Sanjay Jog 
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THE TIMES OF INDIA, Wednesday, November 21, 2001
DPC sponsors meet next week for due diligence talks 
Senior officials of energy major Enron Corp, Bechtel and GE, the three foreign sponsors of the troubled Dabhol Power Company (DPC), will meet in Houston next week to take a decision on whether to proceed with the proposal of due diligence to be carried out by city-based power utilities, the Tata Power Company and BSES Ltd. "The offshore sponsors of DPC have not yet given their go-ahead for potential buyers of their 85 per cent equity to commence due diligence. They are scheduled to meet before this month end to decide their next step regarding Dabhol project," sources close to the sponsors said here on Tuesday. When contacted, DPC spokesperson declined to confirm or deny the development. Sources said that the sponsors' decision would be conveyed to the Industrial Development Bank of India-led consortium of Indian lenders by first week of December. "Contradictory to recent announcements by Indian lenders, and the prospective buyers, the ability of any party to sign the confidentiality agreement and proceed with due diligence will after all depend on the three foreign sponsors' approval," they pointed out.
Both Tatas and BSES would need their approval and co-operation to commence due diligence, sources emphasised. Tata Power managing director Adi Engineer confirmed that they were yet to commence DPC due diligence. "We are waiting to sign the confidentiality agreement with DPC sponsors after which Tata Power would take at least a few months to complete the process," Engineer said. Sources termed the meet as critical in deciding the future course of events in resolving the issues surrounding the $3 billion power project. "Enron, GE and Bechtel had raised the issue of continuing costs of fundings during the three-day marathon Singapore meet, risen as a result of the Indian and foreign lenders' refusal to disburse additional funds," they informed.
The proposed due-diligence was expected to take another two-three months, sources said, adding the situation had become more fragile with the Maharashtra State Electricity Board not drawing power since May 29 and lenders stopping disbursements to the 2,814 mw project March onwards. "This has resulted in the beleagured DPC also being unable to meet its loan repayment commitments in September and October," they added. During the Singapore meet, the three foreign sponsors had also expressed their grave concern about bearing additional expenses as the due diligence process would take its own time and incur significant costs, only adding to deterioration of assets and their cost burden, the sources said. On Monday, BSES Ltd chairman and managing director R.V. Shahi had announced that the company was likely to complete the due diligence of the Dabhol project by January end next year. Shahi said that BSES had returned the draft of confidentiality agreement with comments to DPC. BSES would appoint three separate consultants for doing technical, financial and legal due diligence along with an internal task force to do parallel ground work, he said.( PTI )
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THE ECONOMIC TIMES, Wednesday, November 21, 2001
BSES inches forward in DPC race 

BSES has inched a step forward in the race to acquire Enron's stake in Dabhol Power Company. The company, which is one of the bidders for Enron's stake has approached the heads of financial institutions for funding of the project after the change in ownership. Irrespective of who the new stake-holder is, they would need the Fis to lend to them to see the completion of the project. The heads of institutions are at present considering the BSES request though a view is yet to be taken on the issue. BSES apart, Tata Power is the other serious contender for the project.

The Fis have been sounding out the both BSES and Tata Power as the government feels that buying out the plant could be good proposition if some of the tariff issues are sorted out. R V Shahi, chairman-cum-managing director of BSES said after his meeting Singapore last week that talks were progressing and the company would soon get on with the next stage. BSES, is likely to complete due diligence of the 2,184 MW Dabhol Power project by January end next year. "The due diligence process will take 6-8 weeks after signing of the confidentiality agreement with Enron promoted DPC," BSES CMD R V Shahi told reporters here. Shahi said BSES has returned the draft of confidentiality agreement with comments to DPC. The confidentiality agreement, a pre-requisite for beginning due diligence of DPC to assess the value of its assets, investments needed to complete the 1,444 MW Phase-II and its liabilities, would in all probability be signed by the end of this month.BSES would appoint three separate consultants for doing technical, financial and legal due diligence of the 2.9 billion dollar project, he said, adding that simultaneously an internal task force would also be appointed to do parallel ground work. Shahi said the company has shown interest in acquiring 85 per cent stake of Enron, Bechtel and GE in the Dabhol project at the recently concluded Singapore meeting convened by FIs. After signing the confidentiality agreement BSES will formally look into the financial books of DPC, its loans, sponsors and other assets and legal wrangles before taking any decision on the acquisition price.
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THE HINDUSTAN TIMES, Wednesday, November 21, 2001
Enron in talks to sell off data centre, Arun Kumar 

Beleaguered energy major Enron is said to be in negotiations with at least two prospective Indian buyers for selling its $18 million Internet Data Centre (IDC) located at Mumbai. This is the second Indian investment that Enron is looking to exit from. It is already in the midst of a possible selloff of its stake in the controversial Dabhol Power Co. When contacted, an Enron India spokesperson said "as part of our policy we do not discuss this issue with the media. As you are aware such issues are part of our global strategy, but we are not desperate to sell". 

However sources maintained that the company was talking to at least two bidders, one being a leading Mumbai real estate firm, and that talks were currently hedged on pricing issues. The reason for the selloff move is part of Enron's decision to exit from India, the sources added. The move is also being fuelled by the recent $9.5 billion acquisition of Enron by Dynegy Inc. According to the sources, Enron may sell IDC at below cost. It had invested over $18 million (over Rs 90 crore) to develop the 30,000 sq. ft. data center, which caters to a host of new economy firms, including Hungama.com and Gateway System. The sources added Enron had considered roping in a strategic equity partner for IDC and, since that did not happen, "it has now decided to exit from this business". 

Enron India had announced grand plans for setting up a nationwide fiber optic cable backbone to tap rising demand for bandwidth. After the company abandoned this plan, speculation was rife that it would divest its data center sooner or later. Analysts said the center is a standalone business globally and Enron was left with no option but to take bandwidth on lease from others. This increased the project cost, they observed. The company had originally planned to set up five more data centers in Bangalore, Delhi, Chennai, Hyderabad and Ahmedabad. 
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THE ECONOMIC TIMES, Wednesday, November 21, 2001
Enron restates Q3 earnings 

S embattled Enron examines its books, the energy trader restated its third-quarter earnings, increasing its loss for the period by 3 cents a share to 87 cents. The company also disclosed it is trying to restructure a $690-million obligation that could come due November 27. Enron spokesman Mark Palmer said the company has the cash on hand to pay the obligation but would like to have it restructured and extended. "We are working with the lenders to restructure or extend the term on the obligation," he said. Palmer said the obligation could come due because of Enron's lowered credit rating. When the rating was reduced, it triggered a clause in one of the "limited partnership agreements that could cause that $690 million obligation to become due beginning next week." 

Houston-based Enron, which is being purchased by rival Dynegy to escape a recent spate of problems and shattered Wall Street confidence, also increased nine-month earnings by a cent to 20 cents a share. Dynegy is purchasing the company for $7.8 billion in stock. In a filing with the Securities and Exchange Commission on Monday, Enron explained that auditor Arthur Andersen LLP hasn't finalised its review of the company's financial statements because of an ongoing investigation by a special committee appointed by Enron's board of directors. "We are continuing to review the transactions in question and are making progress with our investigation," said William K Powers Jr., chairman of the special committee and dean of the University of Texas School of Law. The merger is expected to go through by next summer. Dynegy, backed by major investor ChevronTexaco, will also assume $13 billion of Enron debt. Enron agreed to be bought after its stock price plunged about 80 per cent in the weeks after it disclosed a third quarter loss followed by an acknowledgment that the Securities and Exchange Commission was investigating partnerships run by company officials. (AP)
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THE FINANCIAL EXPRESS, Wednesday, November 21, 2001
Maharashtra govt objects MSEB's 19% tariff hike, Sanjay Jog 

Bowing to the pressure from an influential powerloom and agricultural lobby along with various consumer organisations, the state government has strongly opposed the Maharashtra State Electricity Board's (MSEB) 19 per cent tariff hike suggested for 2001-02 to the Maharashtra Electricity Regulatory Commission (Merc). The state government, in its affidavit before the Merc has made it clear that the tariff hike proposed by the state electricity board was on \"higher side in respect of domestic, agricultural, powerloom and public works consumers."

According to the government affidavit, the tariff hike for the domestic consumer for the slab of 0-30 units would comprise Rs 20 as fixed charge per month and 75 paise per unit as energy charge instead of MSEB's proposal of Rs 75 per month fixed charge. For non-domestic consumers, the government has proposed a fixed charge of Rs 100 per month and energy charge of Rs 2.50 per unit for 0-100 units. Although the government has proposed a fixed charge of Rs 100 per month for 101-200 units and 201-above units like the MSEB, it has suggested an energy charge of Rs 4.60 and Rs 6 as energy charge for 101-200 units and 201-above units respectively. For powerlooms, the fixed charge would be Rs 75 per horse power per month instead of MSEB's proposal of Rs 100 per kw per month. However, it has suggested different energy charges against MSEB's proposal of a similar energy charge of Rs 2 per unit. For agricultural consumers, the flat rate tariff would be Rs 100 per horse power per month instead of MSEB's proposal of Rs 300 per KW per month for load between 0-5 horse power. The state government has admitted that there was a difference of opinion between it and the state electricity board with regard to the proposed tariff increase. 
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THE FINANCIAL EXPRESS, Wednesday, November 21, 2001
State opposes MSEB proposal on 19 per cent power tariff hike, Sanjay Jog 

Bowing to the pressure from an influential powerloom and agricultural lobby along with various consumer organisations, the state government has strongly opposed the Maharashtra State Electricity Board's (MSEB) 19 per cent tariff hike suggested for 2001-02 to the Maharashtra Electricity Regulatory Commission (Merc). The state government, in its affidavit before the Merc has made it clear that the tariff hike proposed by the state electricity board was on "higher side in respect of domestic, agricultural, powerloom and public works consumers." According to the government affidavit, the tariff hike for the domestic consumer for the slab of 0-30 units would comprise Rs 20 as fixed charge per month and 75 paise per unit as energy charge instead of MSEB's proposal of Rs 75 per month fixed charge. For non-domestic consumers, the government has proposed a fixed charge of Rs 100 per month and energy charge of Rs 2.50 per unit for 0-100 units. 

Although the government has proposed a fixed charge of Rs 100 per month for 101-200 units and 201-above units like the MSEB, it has suggested an energy charge of Rs 4.60 and Rs 6 as energy charge for 101-200 units and 201-above units respectively. For powerlooms, the fixed charge would be Rs 75 per horse power per month instead of MSEB's proposal of Rs 100 per kw per month. However, it has suggested different energy charges against MSEB's proposal of a similar energy charge of Rs 2 per unit. For agricultural consumers, the flat rate tariff would be Rs 100 per horse power per month instead of MSEB's proposal of Rs 300 per KW per month for load between 0-5 horse power. The government has admitted that there was a difference of opinion between it and the MSEB with regard to the proposed tariff increase. "As such, it is necessary that MSEB and state government come to an agreement in this regard for which the Commission may take appropriate steps," the government said. "The government of Maharashtra has taken note of apprehensions expressed by public representatives and has come to the conclusion that the proposed tariff in respect of certain categories of consumers, as mentioned above, is indeed on the higher side."