Answer to the query about GAIL investment in India is below.   mcs
---------------------- Forwarded by Mark Schroeder/LON/ECT on 02/06/2000 
11:10 ---------------------------


Jane Wilson@ENRON_DEVELOPMENT
02/06/2000 21:22
To: Mark Schroeder@ECT
cc:  

Subject: More Information

We own 5% of GAIL by way of "global deposit receipts."   We are not allowed 
to sell these GDRs in India but may sell them anywhere else.  They are listed 
on the London Exchange.  One thing to think about is that GAIL will be 
privatized in the long term.  As the largest private investor, we will be 
able to convrt to voting stock.  However, to do so we must obtain the consent 
of the FIPB (left out a letter earlier) -- the Foreign Investment Promotion 
Board.  Apparently, this is not a good time to even think about it because 
there is a huge debate in Delhi about the role of foreign oil companies in 
their sector, i.e., the wisdom of allowing foreign ownership of the oil 
sector.  

On a separate topic, I need to do due diligence on the "Power Trading 
Corporation".  This is part of the Powergrid state organization which is 
currently comprised of three sections: the central transmission agency, the 
central independent system operator and the Power Trading Corporation.  I've 
been reading news clippings that sound so peculiar that this organization, I 
suspect, can harm our marketing designs in India.  FYI, there is discussion 
about our investing in this organization and perhaps trading through it as a 
way to manage credit risk.  I'll let you know more as I learn it.