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Power play in MAHARASHTRA
May 31, 2001 12:19 PM 5401 Views

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The Maharashtra State Elecricity Board has signed a Power Project Contract with Enron, the energy gient of United States in 1995. and from then the contravercies has been stated in the state.


firstly MSEB was in need of Electricity and for satisfing the demand ofelectricity, the project was started.


but when the another govt. took the seat of maharashtra state, the game started. the new govt. cancelled the contract of the project but later they again invited the power major to start the project again. they renegotiated the terms and conditions with the Enron and the project stated instalation.


in the year 1999, the first phase started gereration of power and sell it to MSEB.


some months passed, Central Govt. showed green signal to the 2nd phase of the project.


and now the 2nd phase is going to complete, MSEB has raised the point to cancel the agreement made with the multinational, for the cause of high tarrief of the power gererated.


MSEB stopped buying the power now.


i dont know what will be the result.


see the policy of MSEB, which is now saying that the state is not in need of so much power, a few small hydro-power projects can satisfy the need of power.


so they are likely to terminate the contract with the power major, ENRON.


as we see the 2nd phase is being almost completed and the company has given the date of starting the 2nd phase generation on 7 the june, now MSEB is dening to purchase the 2nd phase power.


it seems very difficult to the company to leave the project as there is a huge uncertainty of receiving the cost of power from the GOvt of india.


i think MSEB will go into the bancrupcy if the enron terminate the contract and leave the project.


the penalty amount is very huge and both the Govt of maharashtra and the MSEB cannot give the cost.


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