Kerala denies talks with Enron Corp

"The government was aware that several problems had cropped up between Enron and the Maharashtra government on the setting up of the power project at Dabhol. Therefore, it would consider any collaboration with Enron only after serious scrutiny," the minister said.

On the other hand, a press statement issued by Enron on December 30 claimed that Enron International, a wholly owned subsidiary of Enron Corporation, would acquire a 74 per cent interest in the 513 MW Kannur power project in Kerala.

"Enron will jointly develop this project with KPP Nambiar group, which will hold the remaining 26 per cent of the project’s equity. The project is expected to cost approximately US $ 400 million," the Enron statement said.

"The Kannur project will go a long way in helping Kerala satisfy its energy requirements. Enron will focus on bringing the project on line as quickly as possible," said Rebeeca P Mark, chairman and Chief Executive Officer of Enron International. She had also expressed the hope that this would be the beginning of a long association with the state of Kerala. Enron also specified that the project has received an in-principle clearance from the Central Electricity Authority (CEA) and is currently awaiting the final techno-economic approval.