THE FINANCIAL EXPRESS, Wednesday, October 24, 2001 
Anti-Enron lobby takes a knock as state excludes Aney from lawyers panel, Sanjay Jog
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THE ECONOMIC TIMES, Wednesday, October 24, 2001		
BG offers ONGC equity in Brazil for Mukta-Panna, Soma Banerjee 
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THE INDIAN EXPRESS, Wednesday, October 24, 2001
US regulators probing Enron deals, stock slides 20 pc
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THE ECONOMIC TIMES, Wednesday, October 24, 2001
AES approaches Indian govt for payment dues

Similar story also appeared in the following publication:

THE TIMES OF INDIA, Wednesday, October 24, 2001
AES approaches PM for payment of dues
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THE FINANCIAL EXPRESS, Wednesday, October 24, 2001 
Anti-Enron lobby takes a knock as state excludes Aney from lawyers panel, Sanjay Jog

The anti-Enron lobby has received a major setback following the Maharashtra government's decision not to include senior advocate Shrihari Aney's name in the panel of lawyers which would brief the state's solicitors DLA and the Queen's counsel Lord Alexander to challenge the London court's ex-parte order restraining the government from filing any suit in the Indian court or tribunal against the international arbitration proceedings initiated by the Dabhol Power Company (DPC). The state government's panel would comprise of its solicitors Rafiq Dada, Amit Harayani and Darious Khambata. The team would leave for London in the first week of November. State government sources told The Financial Express that Mr Dada, Mr Harayani and Mr Khambata would brief the government's solicitor DLA and its Queen's counsel Lord Alexander. The government was in the process of preparing its petition challenging the October 10 order of London High Court of Justice (Queen's Bench Division, Commercial Court). Sources said that the axe has fallen on Mr Aney following his outburst against the government on September 18 for exclusion of fraud in the proposed civil suit to be filed against DPC in the Mumbai high court. Mr Aney's views in this regard has been publicly supported by the anti Enron lobby which had alleged that certain forces in the government were "diluting" the Dabhol suit. Mr Aney, who had withdrawn his resignation as the government's counsel after his meeting with the state energy minister Padmasinh Patil, had stressed the need for including fraud, issues related to public interest, public policy and absence of legal sanction in the civil suit "in order to put forward a complete, fruitful and effective case against the DPC." Analysts believe that the government did not want to face further embarrassment and decided to drop Mr Aney's name from its panel visiting London. The DPC in its defence had quaoted Mr Aney's observations before the London High Court of Justice (Queen's Bench Division, Commercial Court) before seeking an injunction. According to DPC, "there are some indications as to state government's intended position in the Indian press reports. In particular, it appears that the state government are void and to reply upon grounds of fraud, public policy, public interest and misrepresentation." Quoting the newspaper report, the DPC said "the state government's lawyer was reported as proposing a broad based suit which should pray that the high court declare the three contracts with DPC as unforceable and void and that this argument should be based on a number of factors. "DPC made material misrepresentation to MSEB about the plant's capabilities. 
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THE ECONOMIC TIMES, Wednesday, October 24, 2001		
BG offers ONGC equity in Brazil for Mukta-Panna, Soma Banerjee 

BRITISH Gas (BG) has offered ONGC equity in its exploration acreage in Brazil and a settlement in the cash call dispute in lieu for the operatorship of the Tapti Panna and Mukta oilfields which is being claimed by ONGC and Reliance following the sale of Enron's equity to BG. The Britain-based gas major had set a deadline of October 31 to settle the issue over operatorship. 

In return for the package BG has asked ONGC towaive its right to seek the removal of EOGIL, acquired by British Gas, asoperator following the change of control. The operatorship of the fields are a crucial issue to all the equity holders as it is an extra source of revenue. Niger Shaw, the vice-president BG India had said that the deal to buy out Enron Oil and Gas India 30 per cent stake would fall through if BG was not given the operatorship of the oilfields. 

EOGIL was the operator of these fields and BG had bought the company with the understanding that the operatorship of the field would be transferred to the new equity holder. However, both ONGC and Reliance the other equity holders in the project have staked claim to the operatorship. The production sharing committee has entailed that the issue of operatorship has to be decided on a consensus by the equity holders of the project. 

Shaw also confirmed that negotiations were on with both the equity holders and BG would put down what it could offer in return. However, still the discussions were still being held, he declined to give any details. BG, which has sealed this deal for a whopping $388 million and is hoping to expand its capacity by investing $250 million, is trying to make its offer lucrative so as to waive the opposition by ONGC and Reliance. 

In a recent communication to ONGC the company has assured its commitment to the adoption of a very different style of working, imposed in the past. Further, in order to ensure that the two companies have a good working relation, BG has made an offer to ONGC by which the latter could have a greater involvement in the operation of the fields. 
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THE INDIAN EXPRESS, Wednesday, October 24, 2001
US regulators probing Enron deals, stock slides 20 pc
Shares of Enron Corp slumped more than 20 per cent on Monday after it said US regulators are looking into some of its transactions, the latest in a series of blows for the company whose new chief executive officer resigned unexpectedly in August. A spokesman for North America's biggest buyer and seller of natural gas and electricity declined to discuss a request for information by the US Securities Exchange Commission, but said it was cooperating. The SEC also declined to provide details. Investor confidence in the company has been rocked by recent reports in The Wall Street Journal about transactions between Enron and two limited partnerships that were run until recently by Enron's Chief Financial officer, Andrew Fastow. The Journal said the deal raised "conflict-of-interest" questions but Enron has rejected any such suggestion, saying the deals were disclosed in SEC filings and approved by its board and internal and external auditors. A former Wall Street favourite that has fallen from grace during the last 12 months, Enron reported its first quarterly loss in more than four years last week after taking $1.01 billion in charges and writedowns on ill-fated investments. Enron has suffered a series of high-profile setbacks, ranging from problems at its broadband telecommunications business, a payments dispute at an Indian power plant project and the departure of CEO Jeff Skilling after only six months in the job. Its stock closed down $5.40, or almost 21 per cent, at $ 20.65, slicing $4.1 billion from its market capitalisation and making it the New York Stock Exchange's biggest percentage loser of the day. At one point the shares fell below $20 for the first time in 46 months. Monday's slide followed heavy losses for Enron's stock last week. 
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THE ECONOMIC TIMES, Wednesday, October 24, 2001
AES approaches Indian govt for payment dues

AFTER Enron, it is the turn of US-based AES to seek the Indian Prime Minister's help to settle its grievances with the Orissa government. In a letter to Atal Bihari Vajpayee, AES president Dennis W Bakke said his company's determination to continue in India was being tested by the government of Orissa . The letter, a copy of which was made available to The Associated Press on Tuesday, was dated October 1, and appeared to have been faxed to the office of Prime Minister Atal Bihari Vajpayee. The Virginia-based energy company operates two power plants in Orissa, holds 49 per cent of the Orissa Power Generation Corp and manages the main power distribution company in the state. AES is the other major American power company besides Enron to have made big investments in India after the government allowed foreign investment in the power sector in the early 1990s. In his letter, Bakke drew Vajpayee's attention to the "expropriation, repeated contract violations, intimidation ... and direct interference with day-to-day management" by the state government and its agencies.The letter also complained about government-run agencies failing to pay Rs 210 crore ($44 million) in bills. 

"If the situation faced by AES is not remedied urgently, it will undermine the trust and confidence of foreign investors in India," Bakke wrote. "While AES still remains committed to India as a country it would very much like to serve, our determination to continue is being tested." The Prime Office said it was not ready to comment on the report. Officials of the Orissa government were not available to respond to Bakke's charges in view of a Hindu festival. AES has already offered to withdraw from the distribution company -- known as the Central Electricity Supply Company of Orissa. However, it has said that the company will continue with its interests in electricity generation. If AES decides to pull out completely, it will the third American company to do so. Cogentrix quit a power project in southern India before it was started, while Houston-based Enron is in the process of withdrawing from the Dabhol Power Project, India's biggest-ever foreign investment project, in Maharashtra. On September 14, Enron chairman Kenneth L Lay wrote a letter to Vajpayee threatening legal action to pursue claims of up to $5 billion relating to the Dabhol Power dispute and questioned India's ability to honor its contracts. Lay had also warned that India may find it hard to attract foreign investors in the future because of the payment dispute with the Dabhol project, which stopped production and construction in May. (AP) 
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