Deshmukh passes the Enron buck to PM

The DF government’s move, clearly aimed at pulling the BJP-led government at the Centre in to the Enron controversy, also points out to the fact that it was the Vajpayee-led BJP government which in its 13 day tenure, had directed the then Sena-BJP alliance government in Maharashtra to revive the project it had scrapped earlier.

Deshmukh said: "The government in its letter to the Centre has suggested several ways for shouldering the responsibility of the controversial power project. The Centre can buy power in bulk through National Thermal Power Corporation or Power Trading Corporation, which will cost it relatively cheaper,” he pointed out.

“The project was first brought to Maharashtra by then Congress government led by Sharad Pawar. Asked why the project was adopted at the first place, Deshmukh said the projections had changed during the last few years. The rates of dollars as well as the naptha shot up beyond our expectations,” he admitted.

State Chief Secretary V Ranganathan and Energy Secretary V M Lal were in New Delhi today to discuss the issue with Union Finance Secretary.

Deshmukh has announced that the experts’ panel to review the power project will be headed by former MSEB chairman Madhav Godbole. The other members of the committee will be finalised and announced on Thursday, he added.

The terms of reference given to the committee are: immediate steps to come out of the current billing crisis, studying the entire project and guiding the government on its future course of action and finally to suggest measures to enable the MSEB to cope up with the demand for power in future.

Asked if the government will put the project on hold till the committee submits its report, Deshmukh said, “They are already on hold.”

The Chief Minister was irked at the Crisil’s downgrading of State Government PSUs credit rating. “The agency peformed the exercise so hastily, that we have reason to suspect that there exists a nexus, ”he remarked.

Meanwhile, the cabinet today formally decided not to impose hike in power tariff for peasents and powerlooms. The Maharashtra Electricity Regulatory Commission had suggested hike upto Rs 900 to Rs 1400 per horse power per year to the agricultural connections and upto Rs 300 for powerloom connections. However,the consumers in these two catagories will have to pay the power bills at earlier rates–Rs 600 to Rs 800 per HP per year for farmers and Rs 175 per HP per year for looms. For the purpsose, the State Government will have to pay Rs 800 crore to the cash-strapped MSEB. “We will pay the amount as and when possible,”Deshmukh said.

However,the cabinet also decided to hike the tariff by Rs 100 per year for agricultural connections and Rs 75 per year for powerlooms from March 2001. It will continue till the tariff reaches the amount suggested by the MERC, Deshmukh said.