THE HINDU BUSINESS LINE, Tuesday, November 27, 2001
A.V. Birla 'not keen' on Dabhol 

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 
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THE FINANCIAL EXPRESS, Tuesday, November 27, 2001
DPC board meet on course despite MSEB dissent note, Sanjay Jog
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THE ECONOMIC TIMES, Tuesday, November 27, 2001
MSEB denies sops to DPC buyer 
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BUSINESS STANDARD, Tuesday, November 27, 2001
November 30: The countdown begins for Dabhol, S Ravindran Mumbai 
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THE ECONOMIC TIMES, Tuesday, November 27, 2001
Life after Enron
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THE FINANCIAL EXPRESS, Tuesday, November 27, 2001
ONGC board meet holds key to Panna Mukta operatorship, Prasanna Upadhyay
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THE TIMES OF INDIA, Tuesday, November 27, 2001
Man arrested for issuing e-mail threat to Enron ( carried only by the online edition)
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THE HINDU BUSINESS LINE, Tuesday, November 27, 2001
A.V. Birla 'not keen' on Dabhol 

THE A.V. Birla group today said it is not interested in buying a stake in the Enron-promoted Dabhol Power Co (DPC), although it appears to have studied the power project. In a statement, the group said it has ``looked'' at the Dabhol project but is ``not interested in pursuing an equity investment in DPC.'' Currently, financial institutions are considering proposals put forth by Tata Power Co and BSES Ltd to pick up Enron's 65 per cent stake in DPC. 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 of 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 available at cheaper prices. Buying power from Enron is an option only if the power tariff is reasonable,'' Ms Mehta said. 

Regarding the sale of Enron's stake in DPC, she said there was a specific time-frame assigned for completing the due diligence process. ``Once the process is complete it will not take time to finalise a deal,'' she said. Talking about the disbursements for the Accelerated Power Development Project (APDP), Ms Mehta admitted to delays in disbursements earlier but the Government 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 crore to Bombay Electricity Supply and Transport Company (BEST) for the year 2001-2002 for transmission, distribution and convergence purposes. The disbursements 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 it.'' The total allocation for Maharashtra under APDP is more than Rs 300 crore. 
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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 Maharashtra State Electricity Board (MSEB), is firm on holding its board meeting 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 Vinay Bansal and state principal secretary VM Lal, who are directors on the DPC board, have decided not to attend the meeting. DPC spokesperson Jimmy Mogal 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 termination notice. According to MSEB sources, it has questioned the holding of November 30 meeting especially when it had cancelled the previous board meeting scheduled for November 19 in London at the last minute. MSEB has also demanded a change in the venue of the meeting from London to Mumbai. The state electricity board has also taken an objection for the ensuing meeting especially 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 misrepresentation and default on the availability of power which led to the present situation. Had DPC corrected its capacity availability after the MSEB imposed rebate for the first time in February, the situation would not have reached this stage, sources added. MSEB also blamed DPC for non-payment of rebate of Rs 401 crore imposed by it for the default on the availability of power on January 28. Furthermore, it also defaulted on February 13 and March 29 and failed to pay successive rebates revised thereafter. The November 30 meeting would also take up issues related to asset preservation, financial position of phase-I, debt servicing of phase-II and opening of letter of credit for the charter. Meanwhile, MSEB technical director (corporate planning) 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.
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BUSINESS STANDARD, Tuesday, November 27, 2001
November 30: The countdown begins for Dabhol, S Ravindran Mumbai 

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 the same day, the DPC board will meet in London to consider authorising managing director K Wade Cline to serve the final termination notice on MSEB. Even if Cline gets the nod from the board, he will not be in a position to serve the notice unless the lenders give the go-ahead. "We have decided to meet on November 30 as it is convenient for us. The DPC board meeting is a pure coincidence," sources in the lenders' consortium said. The meeting assumes 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 feasibility of such a move. The steering committee of the lenders comprising Credit Suisse First Boston, Citibank, Bank of America, OPIC, ANZ Investment Bank and the Industrial Bank of India will meet to take stock of the situation. 
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THE ECONOMIC TIMES, Tuesday, November 27, 2001
MSEB denies sops to DPC buyer 

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 the potential to derail the ongoing discussions with the two prospective bidders as Tata Power and BSES are unlikely to proceed with the deal without such a viable model in place. "So far, all the discussions between the FIs and the utilities were based on the assumption that MSEB and the state government would agree to this lollipop," said a senior FI official. MSEB chairman 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 distribution circles. That will jeopardise MSEB's cashflows."
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THE ECONOMIC TIMES, Tuesday, November 27, 2001
Life after Enron

OBITUARIES for the Dabhol Power Company (DPC) were premature. With every passing week, it appears that the 2,100 MW power project in Maharashtra is likely 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, which 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 prospect 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. 

What Enron needs now is cash: finances of the Houston giant are shaky and it has to arrange credit for nearly $700 million debt quickly. Given that, Indian buyers can winkle out an even bigger discount by agreeing to pay the money up front, instead of in instalments. Inevitably, lenders will also have to write down interest on debt, or even take some writeoffs to bring debt in line with lower equity valuation. Once the financial restructuring is complete, DPC power will become affordable. Or will it? Arguably, electricity has been India's most reform-proof sector. This resistance to change has deep roots: in administrative collapse, populist politics, the dominance of the public sector at the Centre and states; in corruption, regulatory failure or apathy and with consumers who are used to getting power free. To make DPC - or any power project - viable in the long run, consumers have to start paying for electricity. Failing that, utilities should cut them off. This 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 will have the freedom to privatise distribution without amending local laws, IPPs will be able to sell power to consumers. This is a large reform programme which will need serious political will at all levels of government to implement. Yet, experience has shown that nothing less will work. 
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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 and gas fields is coming to a head as the Oil and Natural Gas Corporation (ONGC) board is slated to meet on Tuesday to discuss the issue threadbare. The hopes of British Gas (BG), which has decided to buy out the 30 per cent Enron 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 operatorship. However, ONGC, which holds 40 per cent in the fields, and Reliance, the other 30 per cent stakeholder, have both pitched for operatorship rights. Only if the ONGC board agrees to allow BG to take the rights can the deal 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 operatorship 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 comment 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 said. While sources close to BG added that Reliance has agreed for transfer of operatorship from Enron to BG, a Reliance spokesperson, when contacted, categorically denied that Reliance had given a green signal for transfer of the operatorship to BG. 

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 resolve the issue, the suggestion of joint venture operatorship was raised from some quarters, so that all the three joint venture partners could be included in the operatorship. Another suggestion was that the three fields should be distributed to the three partners. However, BG is sticking to its demand 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 Dynegy Inc has decided to withdraw from oil and gas in India as part of its global strategy. 
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THE TIMES OF INDIA, Tuesday, November 27, 2001
Man arrested for issuing e-mail threat to Enron ( carried only by the online edition)

PUNE- If you're thinking of sending scary, anonymous emails, think again.The police are fast catching up on the technology to trace such mails. On Friday, the Ratnagiri police arrested Pune-based computer professional Habibuddin Sheikh 20). A former employee of the Dabhol Power Corporation DPC) Sheikh 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 company was being targeted because it was a venture of the American giant Enron, 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 investigators were already working on the hunch that the mail must have been the handiwork of one of the 1,000 workers retrenched by the company. Sheikh's handwriting in the company's records too matched.