The Enron Dabhol team intends to meet with GE and Bechtel early next week and seek/obtain their approval on putting a joint offer on the table regarding what we would accept for our Dabhol investment. This will include price and other terms of the offer. We need to buy some time for the sponsor meetings to occur next week as well as correctly position the current status in the press. Currently, there is considerable Indian and international wire service press that is saying that Enron, GE and Bechtel have agreed to participate in an equity sale on the terms and for the price range outlined by the Indian banks. This is clearly not the case, and I recommend we give a firm push back on this, while keeping the door open for a subsequent offer from the sponsors. Below is a letter I intend to send to the Indian banks on Tuesday morning, India time. The summary of the letter is that it tells the Indian banks that we are meeting with Enron, GE and Bechtel next week and will be jointly deciding our next steps, including what we are willing and not willing to do. And we will communicate this back to the banks after our meetings next week.

Letter  will go to IDBI, ICICI and State Bank of India.

"Gentlemen:

I trust your Diwali holiday season was enjoyable, and I wish each of you a very happy and successful year ahead. 

Following our meetings in Singapore, we will be meeting jointly with the offshore sponsors to discuss the next steps with them and get their approval on how to proceed. These meetings will discuss the various options available to the offshore sponsors that we have mentioned to you in the past, including whether they wish to proceed with a due diligence process and on what terms, especially given the very low indications of value proposed by the Indian financial institutions in Singapore as well as the absence of funding of ongoing costs of Dabhol Power by the lenders. Until we have those offshore sponsor meetings, we will not rule out any possibilities and will work for the best possible outcome that protects the economic value in the Dabhol project.  

As you are aware, just as this past week was a major holiday week in India, this current week is a major holiday week in the United States. Thus our meetings with the offshore sponsors are scheduled for November 26 through 29 in the U.S. 

As soon as the offshore sponsors have formulated their views, we will communicate the same to you. I anticipate this will be during the week of December 3.

Regards,


K. Wade Cline


cc: 	Mr. Engineer, Tata Power
	Mr. Shahi, BSES"