Seethayya,

This is great news.  Credit goes to all those who worked towards making this 
possible, especially Ramu, Mr. Mehta, Jane, Heidi and yourself who went 
through draft after draft of the note to Chidambaram.

This is good news for us!!

Regards,
Sandeep.




K Seethayya
02/06/2001 08:35 AM
To: Neil McGregor/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jane 
Wilson/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Sandeep 
Kohli/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jimmy 
Mogal/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Wade Cline/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Ashok 
Mehta/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mohan 
Gurunath/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Shubh 
Shrivastava/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Heidi 
Hellmann/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Rajesh 
Sivaraman/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Pancharatnam 
Ramaswamy/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Arvind 
Rawat/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Ritu 
Kalia/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT 
Subject: Good news - Cabinet approval for Power Trading

Team: Today Union Cabinet has approved the proposal of Ministry of Industry 
to allow foreign equity participation in power trading. This was conveyed by 
Secretary (Power) during his meeting with Wade. In normal course, the 
proposal was slated to be coming up for Cabinet in next few weeks. Keeping in 
view the developments of DPC invoking State Guarantee, perhaps Cabinet has 
hurried it up. 

The exact proposal approved was - "to allow foreign equity participation 
through automatic route upto 100% for trading in power sector, subject to 
prevailing laws." 

Irrespective of urgency of this approval to us, the best thing is that we are 
getting the approval without Draft Electricity Bill, 2001 being finalised. As 
most of you are aware, initially the proposal was stalled at FIPB level 
pending finalisation of Electricity Bill. Then it has gone to Group of 
Ministers who had taken a positive approach and now the Cabinet has cleared 
it. 

Now FIPB either issue an approval to Enron LLC or advise us to avail 
automatic route. We will have one of it, culminating great team work.

Seethayya