CM fears Enron may hit FDI flow into India

He further said when the first power purchase agreement (PPA) was signed, it was assumed that the Enron-sponsored Dabhol Power Company would provide power at the rate of Rs 2.20 per unit, corresponding with the rate of dollar at Rs 30 and cost of LNG at Rs 4300 prevailing at that time.

But that criteria, unfortunately, had not been taken into consideration, resulting in a situation where the rate of power per unit was placed at Rs 8.54 per unit. “Even if we buy the entire power as per the agreement, the cost will be Rs 5.20 per unit, the CM added.

He also asked the Centre to buy the entire power generated from Dabhol and distribute it to such states, which are facing acute shortage of power as a way out of the crisis.

Earlier in Varanasi, Deshmukh made it clear that there would be no Enron-type agreements in future.

"We do not want to be trapped into the clutches of multinationals (MNCs) and in future there will be no Enron-type agreements," he told reporters here.

Deshmukh said he also did not favour foreign direct investment in Maharashtra.

He blamed the Centre for not formulating a balanced mechanism for the entry of foreign goods in India and wanted that the Centre should impose duty of 300 per cent instead of 150 per cent on import of foreign goods to help Indian industries.

If MNCs adopted a policy of using India as a dumping ground, then the Centre should formulate anti-dumping rules to save the Indian industry, trade and commerce, he said.