enron india newsdesk april 27 th newsclips fyi news articles indian press forwarded sandeep kohli enron _ development 04 27 2001 08 24 nikita varma 04 27 2001 07 51 nikita varma enron _ development enron _ development cc bcc sandeep kohli enron _ development subject enron india newsdesk april 27 th newsclips friday apr 27 2001 http www economictimes com today cmo 3 htm dpc board empowers md cancel mseb contract friday apr 27 2001 http www economictimes com today 27 compl 1 htm mseb pays rs 134 cr protest dpc friday april 27 001 http www businessstandard com today economy 4 asp menu 3 enron india md authorised terminate ppa friday april 27 2001 http www financialexpress com fe 20010427 topl html foreign lenders slam brakes disbursements dpc sanjay jog raghu mohan global banks comfortable enron pull friday april 27 2001 http www indian express com ie 20010427 nat 23 html enron dabhol chief gets powers end deal mseb friday april 27 2001 http www hindu com stories 0227000 htm offer renegotiation late enron mahesh vijapurkar friday 27 april 2001 http www timesofindia com today 27 home 2 htm enron ready pull lenders say wait friday april 27 2001 http www hindubusinessline com stories 142756 dh htm dpc board authorises md issue ppa termination notice friday april 27 2001 http www dailypioneer com secon 2 asp cat story 7 front _ page enron testing maharashtra nerves n raghunatha friday april 27 2001 http www telegraphindia com enron signal switch dabhol power friday april 27 2001 http www thestatesman org page news php 3 id 13026 type pageone theme enron threatens pull friday april 27 2001 http www chalomumbai com asp article asp cat _ id 29 art _ id 10006 cat _ code 2 f 574841545 f 535 f 4 f 4 e 5 f 4 554 4241492 f 5441415 415 f 4 b 4841424152 dpc may wind friday april 27 2001 http www chalomumbai com asp article asp cat _ id 29 cat _ code 2 f 574841545 f 535 f 4 f 4 e 5 f 4 554 4241492 f 5441415 415 f 4 b 4841424152 art _ id 9953 enron offers comment renegotiation h rao http www afternoondc com enron state govt renegotiate dabhol power project hubert vaz economic times friday apr 27 2001 dpc board empowers md cancel mseb contract enron power project crisis thursday deepened board dabhol power company authorising management issue termination notice maharashtra state electricity board even international lenders project asked enron renegotiate power purchase agreement signed mseb decision authorise managing director neil mcgregor issue notice termination contract sell 740 mw power taken board prevented mseb voting ground interested party decision taken six votes favour single opposition vote cast idbi sources said according reports financial institutions anz investment bank credit suisse first boston citibank abn amro state bank india wednesday advised enron terminating ppa mseb mseb chairman vinay bansal two directors attended meeting wednesday representing maharashtra 15 per cent stake near 3 billion project said indian side told would unfortunate enron broke contract bansal declined comment board decision sources said indian side expressed interest holds talks issue rather terminating project possibilities fresh power purchase agreement company state pti economic times friday apr 27 2001 mseb pays rs 134 cr protest dpc despite threat possible termination notice hanging head maharashtra state electricity board thursday made protest payment rs 134 crore disputed amount towards march bill rs 146 64 crore dabhol ready payment wednesday dpc officials could collect cheque due statewide bandh senior mseb official said disputed payment rs 12 64 crore would taken disputes resolution forum enron india managing director k wade cline krishna rao members mseb sources said last week dpc dashed communication government mseb would accept protest payments anymore cline said energy major shall treat payments election pay sums mseb fact owed dpc full company would also recognise purported protest reservation mseb paid rs 113 5 crore february bill protest last month april 23 last domestic international lenders dpc met london held exhaustive discussions multinational move issue termination notice mseb state government pti business standard friday april 27 001 enron india md authorised terminate ppa board enron promoted dabhol power company dpc meeting london wednesday authorised managing director enron india issue notice terminating power purchase agreement maharashtra state electricity board state government board authorised wade cline serve termination notice however mean termination notice served immediately enabling provision used situation arises state government source told business standard london said dpc pressure lenders dpc spokesperson refused comment issue hardening board stand sharp contrast advice dpc lenders warned enron precipitate matters issuing termination notice lenders arrived consensus termination notice need served stage serving notice requires nod lenders exposure 2 billion project sources said given lenders strong opposition termination contract enron board enabling resolution much significance beyond conveying hardening stand regard current imbroglio maharashtra chief minister warned enron scuttle process crisis resolution issuing termination notice state government nominate expert group renegotiate terms dabhol contract enron holds 65 per cent dpc us based ge bechtel hold 10 per cent balance 15 per cent held mseb special purpose vehicle maharashtra power development corporation mseb representatives allowed vote meeting since interested party idbi representative protested board decision meeting attended state energy secretary vm lal meeting held backdrop dispute mseb dpc payment bills mseb failed pay rs 102 crore towards december 2000 bill dpc invoked state government guarantee union government counter guarantee payment rs 127 crore january bill became overdue dpc invoked state government guarantee mseb retaliated january 28 2001 slapping rs 401 crore penalty non supply electricity adequate levels demanded dpc adjust bills penalty stand mseb explained dpc board meeting state government official said centre also supported mseb stand refused honour counter guarantee power company invoked political force majeure clause process conciliation arbitration centre dpc currently financial express friday april 27 2001 foreign lenders slam brakes disbursements dpc sanjay jog raghu mohan global banks comfortable enron pull lenders dabhol power company dpc sharply divided lot international lenders direct contrast stand taken local ones led industrial develoment bank india idbi categorical additional assistance dpc phase ii held abeyance despite completion 92 per cent project work stage also set preliminary termination notice served dpc maharashtra state electricity board mseb within next four weeks follows authorisation given enron india managing director k wade cline dpc president ceo neil mcgregor serve termination notice transfer notices mseb following wednesday dpc board meeting london essence message international lenders following london meeting dpc board emotions work contractual obligations payments met convinced mseb failed meet obligations point enron continuing project company get structuring dpc debt created two classes lenders phase international lenders covered sovereign guarantee phase ii lender however lenders parri passu charge making attachment assets messy affair sources international banks quick point local lenders phase ii project worried awry dpc project affect interests given security assets like sovereign cover desperation made local lenders like idbi slash interest rates months back 16 5 per cent 21 5 per cent leading foreign banker pointed three points made clear stressed uncertain terms international lenders contractual obligations b mseb punctual payments dpc c mseb adopted confrontational position slapping rs 401 crore rebate charge dpc misdeclaration default availability power local lenders led idbi mseb parroting view current situation temporary one international lenders steadfast pulling project way despite stance taken idbi mseb authorisation termination given mr cline mr mcgregor called international bankers pointed look issue charges protection loans event power project scrapped present form points contention phase dpc backed sovereign guarantee b phase ii c extent phase ii covered assets cancellation phase ii may see assets even phase getting attached therefore examination segregation assets phase phase ii warranted pti adds significant move dpc board empowered management sever power supply agreement mseb move could inflict financial liability rs 2840 crore centre decision authorise dpc president neil mcgregor issue termination notice mseb sale power taken board meeting wednesday indian express friday april 27 2001 enron dabhol chief gets powers end deal mseb board dabhol power company subsidiary houston based enron corp decided warn maharashtra state electricity board mseb intends pull plug guhagar based project board meeting held london wednesday board decided authorise dpc president ceo neil mcgregor enron india managing director k wade cline serve preliminary termination notice sale power mseb within next four weeks dabhol project mired disputes since mseb began missing payments last year mseb owes dabhol power 48 million power delivered december january payment ran dispute mseb slapped penalty notices rs 401 crore dpc failure supply power within three hours demand placed mseb paid 24 million february payment 31 million made march thursday 3 billion dabhol project largest foreign investment made india date issuing preliminary termination notice could enable dabhol suspend deliveries negotiates payment disputes preliminary termination notice first three steps could potentially lead abandonment project enron analysts described decision procedural move consistent dpc negotiating strategy recover overdue payments mseb company issues preliminary termination notice step two would official termination notice step three would notice company surrendering control project project terminated government india take hit 300 million besides paying bills rs 1 500 crore next one year enron penalty centre liability dabhol power project terminated would one year electricity bill termination fee 300 million power secretary k basu said contractually centre pay one year electricity bill totalling present prices rs 1 400 1 500 crore take dpc debt stands around 300 million project terminated basu said delhi dabhol power process completing second phase 2 184 megawatt power plant project 95 per cent international lenders project pressurising company get project indian lenders led idbi asking company reconsider decision termination notice meeting london mseb holds 15 per cent stake project strongly opposed dpc move authorise cline mcgregor issue notices termination mseb chairman vinay bansal technical director prem paunikar directors dpc board state principal secretary energy vm lal invitee board raised issue board meeting london mseb claimed dpc needlessly threatening issue various arbitration notices thereby interpreting clauses ppa isolation recent weeks dabhol raised stakes spat mseb delivering notice political force majeure maharashtra step typically invoked dissolve contract case emergency like war coup similar radical political event case dpc move viewed threat stop providing electricity dpc come fire relatively high cost power critics object company charging rs 7 1 kilowatt hour power compared around rs 1 5 kilowatt hour charged suppliers hindu friday april 27 2001 offer renegotiation late enron mahesh vijapurkar mumbai april 26 enron sponsored dabhol power company last night authorised local management issue notice termination power purchase agreement ppa maharashtra state electricity board decided keep stiff upper lip turn stoked speculation switching power phase plant imminent reality lengthy procedure followed prescribed within ppa one source familiar ppa told hindu sudden death project probability dpc vexed developments including sharp pointed observations godbole committee chosen arm serious option would eventually come effect overnight operation lot legal work involved apparently dpc intends arm twisting board directors meeting london maharashtra initially disinclined attend later used forum put across contentions project dpc squarely told mseb nominees board offer renegotiation come rather late also said see room optimism outcome however rule option talks thus underscoring possibility decision authorise termination new weapon maharashtra chief minister mr vilasrao deshmukh hoped dpc would take harsh step would cause lot damage interests independent power producer government today expressed dismay fact mandate team went strength stake dpc put across idea negotiation requirement confrontation echo ls enron issue also echoed lok sabha today power minister mr suresh prabhu said scrapping agreement would cost centre rs 2 840 crores whose liability project agreement limited centre liability case termination one year electricity bill termination fee 300 million blow fis termination could prove serious blow indian financial institutions fis leadership idbi trying convince lenders project notice exposure indian fis project understood covered guarantee either centre state times india friday 27 april 2001 enron ready pull lenders say wait dabhol power company board met wednesday london authorised company management issue termination notice maharashtra state electricity board company however may pull project yet considering lenders met monday opposed move favoured renegotiations sources present meetings said though foreign lenders supported enron termination issue domestic financial institutions led industrial development bank india prevailed deliberations oppose drastic move enron needs lenders consent file pre termination notice pulling project decision empower dpc chief wade cline issue termination notice taken six votes favour single idbi vote move another significant development entire proceedings financial institutions made clear funding phase ii project depend government india assuring payment mechanisms institutions yet disburse 30 per cent sanctioned package crucial completing phase ii expansion project board given powers wade cline issue pre termination notice meeting quite unanimously felt need hour terminate project initiate serious negotiation proceedings said mseb chairman vinay bansal attended board meeting mseb presented views board members understood enron also included rs 401 crore penalty issue heading arbitration proceedings also made clear tariff structure enron quite high downward revision tariffs unavoidable bansal added issue termination notice without consent since exposure project quite large lenders approve plans direction said top banker present lenders meet general consensus project must completed proposal terminate ppa kept abeyance added global arrangers dpc include anz investment bank credit suisse first boston abn amro citibank state bank india parties conducted separate meetings company officials however bankers said company file termination notice even one lender minimum 5 per cent exposure project favours proceedings meanwhile clear reversal roles maharashtra chief minister vilasrao deshmukh said state government keen terminating ppa ask refrain taking harsh steps since would bad news us including dpc deshmukh said deshmukh echoing union power minister suresh prabhu sentiments said government wanted amicable settlement payment row however added termination project would hurt foreign investments dismissed warnings analysts winding 2 9 billion project would blow india efforts woo foreign investors dpc already slapped one conciliation notice centre three arbitration notices state government non payment dues amounting rs 213 crore interest towards bills due december 2000 january 2001 meanwhile mseb officials said mumbai march bills amounting rs 134 crore paid thursday protest payment despite dispute amount asked future course action bansal said dpc hindu businessline friday april 27 2001 dpc board authorises md issue ppa termination notice board directors dabhol power company dpc authorised managing director mr neil mcgregor issue notice intent terminate power purchase agreement ppa maharashtra state electricity board mseb appropriate time decision taken board meeting held london yesterday mseb interested party allowed vote made presentation clarifying stand matter senior state government official said resolution authorise management issue termination notice carried six votes one idbi voted decision official said serving preliminary termination notice lead six month suspension period according clause 17 8 termination procedure ppa following giving preliminary termination notice parties shall consult period six months longer period may agree step shall taken view mitigating consequences relevant event regard circumstances idbi state bank india principal indian lenders earlier persuaded overseas lenders hold consent termination notice time least one lender consent company serve termination notice understood overseas lenders favour termination project prepared consent however domestic lenders worried security advances ppa abandoned mid way according institutional sources indian lenders trying get parties concerned thrash outstanding issues maharashtra central governments favour conciliation mr vilasrao deshmukh chief minister maharashtra yesterday went record state want project terminated mr yashwant sinha union finance minister also understood opinion dpc decide appropriate time serve notice official said mseb pays rs 134 crore meanwhile mseb paid dpc rs 134 crore towards march 2001 bill mseb officials confirmed bill paid protest today morning dpc billed us amount rs 146 crore agree items included senior mseb official said pioneer friday april 27 2001 enron testing maharashtra nerves n raghunatha dabhol power company dpc begun put fresh pressure maharashtra state electricity board mseb maharashtra state government centre early resolution prolonged dispute dpc board directors decision authorise managing director serve contract termination notice mseb indication dpc board meeting london wednesday empowered company management sever power supply agreement mseb move could inflict financial liability rs 2 840 crore centre decision authorise dpc management issue termination notice mseb taken vote six one maharasthra government representatives prevented voting ground interested party contacted company mumbai based spokesperson mr jimmy mogal declined comment reports decision taken dpc board nothing say reports emanating london express views days said however maharashtra chief minister vilasrao deshmukh thursday termed dpc board decision unfortunate already requested company take harsh decision mr deshmukh said mumbai official sources state energy ministry interpreted dpc board decision pressure tactic employed enron subsidiary force mseb clear pending power bills without delay tough posture dpc wants make position stronger formally agree negotiations mseb centre state government cutting price power supplied state electricity board sources said dpc reported decision authorise managing director stop electricity supply mseb mean enron subsidiary would actually go ahead scrapping power contract mseb anything dpc reported decision mount additional pressure mseb clearance pending power bills put stronger position settling dispute mseb part plan arm powers break contract case situation goes beyond control dpc recently served political force majeure mseb centre state government sources said surprisingly dpc london decision comes heels maharashtra government decision set high level committee comprising representatives mseb centre state government negotiate enron subsidiary company reducing cost power supplied state electricity board meanwhile amidst threat possible termination notice hanging head mseb thursday made protest payment rs 134 crore disputed amount towards march bill rs 146 64 crore dpc riday april 27 telegraph friday april 27 2001 enron signal switch dabhol power enron today took first decisive step controversy ridden dabhol power company authorisation company board stop sale power maharashtra state electricity board mseb meeting company houston based energy giant holds 65 per cent mseb 15 per cent attended state energy secretary v lal mseb technical director p paunikar came days lenders discussed payment problems possible termination centre liability enron decides snap agreement year power bill termination fee 300 million however company wait six months day serves notice pulls plug centre shrugged move saying would adverse effect foreign investment power enron walks see fdi inflows power sector hit power minister suresh prabhu said mseb officials said ball court dpc said corporate policy allow comment proceedings board meetings decision coincided rs 134 crore protest payment cash strapped power board part march bill worth rs 146 64 crore speculation mseb coughed amount cool frayed tempers enron hub houston rattled sudden turn events past days dispute come head mseb officials brushed away allusions saying cheque ready wednesday could handed dpc state wide bandh disputed payment rs 12 64 crore taken dispute resolution forum board official said last week dpc told state government mseb would longer accept protest payments move fortify legal position mseb officials say bechtel general electric partners hold around 20 per cent dpc willing go along enron corp terminating deal financial institutions idbi game puts loans risk investments made indian institutions covered centre state counter guarantees unlike made international lenders maharashtra chief minister vilasrao deshmukh called enron decision unfortunate told state government officials attending enron board meeting stop company winding operations state harm parties statesman friday april 27 2001 enron threatens pull enron crisis deepened board directors dabhol power company deciding authorise managing director mr k wade cline serve notice termination contract first phase 2 9 billion power project decision could lead cessation dabhol power supply state taken meeting held yesterday london according reports quoting chairman maharashtra state electricity board mr vinay bansal dpc officials refuse comment anything learnt mseb prepared serve legal notice termination two days meeting mseb said dissuaded nationalist congress party president mr sharad pawar union power minister mr suresh prabhu talks new delhi maharashtra chief minister mr vilasrao deshmukh mseb delegation last monday state government served two arbitration notices centre ready go conciliation dpc failing honour counter guarantee dpc already slapped notice political force majeure protects undeserved claims event exigencies force take extreme step union power minister mr suresh prabhu contended delhi since dpc contributed 0 7 per cent total energy output country termination would phenomenal impact power situation however terminations proceedings go enron corp 65 per cent share holder dabhol power company would stand net hefty amount damages union power secretary quoted saying termination dpc would cost centre rs 1 800 crore total one years electricity bill termination fee 300 million according energy analyst mr pradyumna kaul total liability would cross rs 350 crore however mr prabhu said lok sabha today scrapping agreement would cost centre rs 2 840 crore learnt 20 april mr deshmukh given go ahead mseb prepare legal notice issued enron meeting dpc board directors wednesday meeting energy minister padamsinh patil energy secretary mr vinay mohan lal mseb chairman mr vinay bansal also present notice prepared past weekend taken delegation called mr prabhu 24 april however politicians convinced enron would get tough given huge stake project notice would necessary meeting thus ended decision renegotiate power tariff enron consent among present london meeting mr lal mr bansal mseb technical director mr p paunikar capacity directors however abstained voting since deemed interested party vote go decision idbi also represented board learnt chief minister mr vilasrao deshmukh said state favour terminating project could mean latest manoeuvre arm twist indian authorities could achieve immediate target getting arrears accumulated past three months cleared mseb owes enron rs 146 64 crore march 2001 rs 229 crore december 2000 january 2001 centre today put brave face enron decision saying would adverse effect foreign investment power sector country pti reported new delhi adverse impact result action domestic foreign company far concerned adverse impact fdi power sector power minister suresh prabhu told reporters asked dpc decision authorise management issue termination notice mseb emphasising would fallout decision prabhu said meeting cabinet committee economic affairs expecting cooperation many scandinavian countries well european nations power sector fact power minister also prime minister norway inaugurate seminar power promised lot cooperation sector mid day dpc may wind maharashtra chief secretary v ranganathan said though neil mcgregor managing director dabhol power corporation dpc given complete powers regard dpc operations state including authority wind operations necessarily mean mcgregor issue termination notice mcgregor given powers meeting dpc board london wednesday ranganathan said state officials including maharashtra state electricity board mseb chairman vinay bansal power secretary v lal reported back meeting london regard state failure pay enron ranganathan said bills prepared per power purchase agreement ppa dpc owes money us people informed enron officials fact reason give powers md slap termination notice london meeting mseb industrial development bank india idbi representatives insisted dpc must pay rs 411 crore since could supply power whenever needed chief minister vilasrao deshmukh already termed unfortunate decision board enron promoted dpc give mcgregor powers wind operations deshmukh added already requested enron take harsh decision deshmukh earlier said directed state government officials attending dpc board meeting desist energy company winding operations state would harmful us enron officials keeping mum issue mcgregor said going give comment mid day april 27 2001 enron offers comment renegotiation h rao crucial meeting board directors dabhol power company dpc promoted us energy major enron held yesterday apparently discuss fate 900 million power project maharashtra official word indian state governments decision renegotiate contract enron spokesman declined divulge transpired meeting saying issues discussed meeting confidential received direct communication unless get evaluate details comments make spokesman said asked proposed decision negotiation project maharashtra state electricity board mseb 15 per cent stake asked whether board taken decision empowering dpc managing director neil mcgregor wind operations india spokesman said nothing say enron reportedly authorised mcgregor look various options including selling company stake dpc maharashtra chief minister vilasrao deshmukh said mumbai state government would pay undisputed dues company said maharashtra government favour terminating 2184 mw project wanted amicable solution imbroglio mid day friday april 27 2001 committee renegotiate enron deal committee renegotiate power purchase agreement dabhol power company appointed evening chief minister vilasrao deshmukh said today addressing media persons meeting noted social reformer anna hazare official residence varsha deshmukh said committee would formed evening tomorrow termed unfortunate enron board decision empowering dpc chief neil mcgregor serve preliminary termination notice maharashtra state electricity board said state willing negotiate issue power company renegotiations held per suggestions made godbole committee center also depute representative renegotiating committee want take hasty decision deshmukh saidhe pointed bone contention dpc expensive tariff hoped issue would resolved amicably pointed enron board taken decision serve notice despite state willingness appoint renegotiating committee chief minister said unfortunate earlier meeting hazare deshmukh promised make necessary amendments right information law recently passed state information easily accessed common people also gave patient hearing hazare complaints corruption various state departments promised action guilty thorough inquiry within three months afternoon april 27 2001 enron state govt renegotiate dabhol power project hubert vaz us power giant enron power corporation willingness wrap dabhol power project leave shores may actually materialise though dabhol power company chief mr wade cline authorised since lenders project would decisive say matter disclosing chief minister vilasrao deshmukh confirmed morning state government would churn compromise formula power project dabhol could continued time enron feel slighted enron yet conveyed us decision waiting letter said asked sort compromise state government plans forge mr deshmukh said let officers come back decide future course action definitely going renegotiation project difficult predict outcome enron decision project still asked whether project could moved another state wound maharashtra mr deshmukh said possible per terms agreement us company state government however difficult project move state indicated also confirmed parties would face considerable losses project terminated board directors dabhol power company met london wednesday decided put end controversies surrounding project empowering dpc chief terminate project deemed fit however decision necessarily indicate death knell project enron project riddled controversies right inception pretext political parties state drag mat time time previous sena bjp government terminate project however chose continue following renegotiations enron top visiting officials like ms rebecca mark democratic front government inherited controversial project governments changed hands year half ago meanwhile state energy minister dr padamsinh patil contacted osmanabad circuit house said state government central government decided appoint joint committee renegotiate project enron easy walk project like go litigation would prove costly sides said case project terminated government still manage power needs state though would bit tough job added