enron india newsdesk jan 18 th newsclips vince fyi forwarded sandeep kohli enron _ development 01 19 2001 05 12 pm enron india newsdesk jan 18 th newsclips untie editorial thursday jan 18 2001 http www economictimes com today 18 edito 2 htm state give tax sops dpc buying naphtha ioc sanjay jog thursday jan 18 centre yet receive proposal enron thursday jan 18 2001 http www economictimes com today 18 infro 2 htm untie editorial thursday jan 18 2001 government maharashtra wants new delhi convince power trading corporation central utility buy power dabhol sell across country would far simpler dabhol independent power producers allowed sell power whoever willing pay unfortunately allowed law forces private sector generators sell power state utilities turn permitted sell power across states state electricity boards bankrupt mseb reportedly owes central utilities rs 5 000 crore bring charge many types users power consumed prevent large scale theft electricity including wealthy maharashtra reform state electricity boards privatise transmission distribution given profile buyers private generators demand sovereign guarantees help tide default risks guarantees merely insulate ipps risk make sebs solvent yet india needs power desperately maharashtra india richest state experiences power shortages around 2 000 mw sixth peak needs time hunger power grow india afford wait painful politics seb reform work government bring legislation allows ipps sell power directly paying customers free ipps clutches bankrupt monopsony buyers power trading legislation unexpectedly happy consequences government ipps freed onerous obligations sell power single mostly bankrupt buyers default risks come substantially new delhi state governments scrap guarantees gave ipps past combination power trading private investments generation transmission distribution gradual seb reform create commercial workable competitive power market india anything less recipe disaster state give tax sops dpc buying naphtha ioc sanjay jog thursday jan 18 2001 maharshtra government finance department striving reduce fiscal deficit rs 9 484 crore rs 3 484 crore beginning april year expressed inability provide sales tax waiver dabhol power company dpc procurement 1 2 million tonne naphtha state run indian oil corporation ioc mantralaya sources told financial express wednesday dpc would pay 4 per cent sales tax government way back 1995 modified sales tax rate 4 per cent discourage import naphtha gujarat electrical companies operating maharashtra decision taken view encouraging electrical companies procure naphtha reduced rates within state government sources added sources said companies pay nearly 15 3 per cent sales tax naphtha procured gujarat however following representation government slashed sales tax rate 4 per cent state finance department opinion would presented state cabinet shortly order take final decision deserves special significance especially state energy department loss making maharashtra state electricity board mseb wholeheartedly supported dpc cause recommended sales tax waiver dpc asked union ministry oil petroleum procure naphtha within country view excess availability presentation state government mseb made clear would left alternative pass additional burden mseb would ultimately passed consumers dpc also told state government paid sales tax procurement naphtha glencore calender year 2000 sources state energy department mseb stressed need waiver expressing inability bear additional burden suggested state reciprocate offering sales tax exemption dpc ioc behest centre tried match international landing price naphtha recently signed memorandum agreement dpc state finance department sticks views may hurt state whole sources state energy department mseb said dpc procure naphtha rs 11 050 per ton ioc calender year 2001 compared rs 10 050 per tonne price quoted glencore naphtha price comprises 175 per tonne free board fob 21 8 per cent customs duty 5 4 per cent sales tax 18 87 premium dpc senior vice president mukesh tyagi reiterated company already made appeal state government sales tax waiver naphtha larger interest consumers sales tax pass mseb bear additional burden pass consumers added centre yet receive proposal enron thursday jan 18 2001 centre wednesday said recevied proposal maharashtra government seeking help solve tangle enron promoted dhabol power project relating cost surplus power asked reports maharashtra government sending proposal centre buy surplus power dhabol power company power trading corporation power minister suresh prabhu said received proposal carefully watching situation await concrete proposal intervening matter parbhu said sidelines greentech environment excellence awards ceremony asked whether possibility government asking power trading corporation buy power dhabol power corporation prabhu replied ptc power prabhu earlier asked state government study matter approaching centre payment dues mseb earlier declined pick 15 per cent stake phase ii 1444 mw project enron issue hanging fire maharashtra state electricity board unable clear dues dpc result skyrocketing prices naphtha infact mseb asked dpc backdown completely leading situation dpc stopped production facility begining month state government stepped support tune rs 114 crore enable mseb clear dues october mseb dues dpc november december amount rs 300 crores