----- Forwarded by Sharonda Stephens/Corp/Enron on 01/25/2001 10:48 AM -----

	"ANN SCHMIDT, ENRON CORP." <ENRONPR@bloomberg.net>
	01/25/2001 08:56 AM
		 
		 To: sharonda.stephens@enron.com
		 cc: 
		 Subject: 1BN  ) Enron Reiterates Plan to Cut Stake in India's Dabhol


enron story




Enron Reiterates Plan to Cut Stake in India's Dabhol Power Co.
1/25/1 6:27 (New York)

Enron Reiterates Plan to Cut Stake in India's Dabhol Power Co.

     New Delhi, Jan. 25 (Bloomberg) -- Enron Corp., the world's
biggest energy trader, reiterated its plan to cut its stake in
India's Dabhol Power Co. to 50 percent from 65 percent.
     The Indian government yesterday said it had permitted an
Enron affiliate to invest a further $233 million in constructing
the second phase of Dabhol Power Co. in the western state of
Maharashtra.
     ``Enron is not picking up any additional stake and is not
investing any additional amount of equity in Dabhol over the
amount previously agreed,'' a release issued by the U.S. company's
public relations counsel said.
     Completing the second phase of the 1,920 megawatt power plant
is crucial to the Enron unit to prune its cost of power, at a time
when the state government says it is reviewing a contract to buy
electricity from Dabhol because its rates are too high.
     The state board, which is Dabhol's only customer, is finding
it tough to pay for the power it buys from the company. It is now
being helped by the local government to clear a part of its dues.
     The second phase of the project is likely to be completed by
January 2002 and will help the entire facility switch from naphtha
to lower-priced liquefied natural gas.
     Enron, one of the first big overseas companies to enter India
after New Delhi opened up the economy to foreign investors, saw
construction of the $3 billion plant delayed until December 1996
because of legal battles with local governments.
     Enron shares rose 1.5 percent to 79 3/16 in New York
yesterday.

--Anindya Mukherjee in the New Delhi newsroom (91-11) 334-8821 or
at amukherjee@bloomberg.net/mh

Story illustration: {INEC <GO>} for India's economic policies.

ENE US <Equity>

NI INDIA
NI ASIA
NI ASIAX
NI EM
NI US
NI GOV
NI ECO
NI INDECO
NI NRG
NI ELC
NI RULES
NI PIP
NI TX
NI USSW
NI NORTHAM
NI CMD
NI COS
NI FIN
NI UTI
NI OIL
NI GAS

-0- (BN ) Jan/25/2001 11:27 GMT