Scheme to cut Enron power tariff

MUMBAI, DEC 4: The State Government will formulate an effective scheme to cut the rates of electricity supplied by Enron8217;s Dabhol Power Project DPP.Energy Minister Dr Padamsinh Patil announced that the decision was taken following his meeting on Saturday with Enron President Kenneth Le, who had sought from the Centre the status of a mega power project for DPP recently. The minister said that through this project electricity can be provided at reduced rates to the neighbouring states.

Deputy Chief Minister Chhagan Bhujbal said the Energy department has been asked to study the disparities in the contract signed with Enron for the phase I and phase II of the Dabhol power project at Guhagar in Ratnagiri district. The State Cabinet will discuss the issue at its next meeting, he added.

According to an official of the Industries Department, a higher status for Dabhol Power Projectwill entitle it to large concessions, particularly in sales tax, excise and electricity duty at least for a period of 10 years.

8220;The government had introduced an incentive package for mega projects. If the concessions had to be extended to Enron, then the government will have to amend the entire scheme,8221; the official said.