Panel to review Dhabol impact soon -- Deshmukh

Panel to review Dhabol impact soon -- Deshmukh
EXPRESS NEWS SERVICE

MUMBAI, JANUARY 4: A high-power committee to review US energy giant Enron's controversial Dabhol Power Project (DPC) will be constituted within two days, Chief Minister Vilasrao Deshmukh announced today. He was addressing a press conference after the weekly Cabinet meeting at Mantralaya.

Deshmukh's announcement has come in response to the demand of the small constituents of ruling Democratic Front -- mainly Peasants and Workers Party, Janata Dal and Bharatiya Republican Party-Bahujan Mahasangh -- that Enron's project be reviewed.

A delegation of the DF parties led by chairman of the DF's coordination committee N D Patil had met Deshmukh last week and put forth its demand.

The constituents of DF are stressing on reconsideration of the government's policy on the power project. In fact, BBM led by Prakash Ambedkar has pulled out of the DF ministry while the Janata Dal, too, has threatened to follow suit.

Deshmukh refused to divulge any details about the committee by saying that he will speak about it only after a couple of days.

``It's a bad idea,'' the Chief Minister said when his reaction was sought on Union Petroleum Minister Ram Naik's opinion that the State Government should decide on waiving five per cent sales tax on Naptha being supplied to Enron.

``The effect will be the same on the State exchequer,'' he said.

On MSEB's gas-based project in Uran, Deshmukh said he had talked to Naik for four times and Energy Minister Padmasinh Patil had discussed the issue with the latter at New Delhi. The Uran unit will be able to generate additional 500 MW power if the required quantity of gas was supplied to it, he pointed out.

The capacity charges of Enron along with the fluctuating prices of fuel has resulted in huge power bill of the DPC putting the cash-strapped MSEB in further crisis. At present, the board is buying hardly 300 MW power from DPC although the generation capacity of the phase I is 700 MW.