NAGPUR, NOV 30: The Public Undertakings Committee of the State Legislature has strongly objected to provisions in the Maharashtra State Electricity Board (MSEB)’s power purchase agreement (PPA) with Enron which forced the State to purchase power at a costlier rate than other sources.Strongly criticising the unusual haste shown by the Government in clearing the project, the committee has advised it to consider the burden such projects would put on the people of the State, while allowing new projects in future.In its report for the year 2000-2001 tabled in the State Legislature today, the committee has flayed the unusual haste shown in clearing the project without considering the financial aspects and their implications on the State. Initially, it was told that the cost of power would be Rs 2.15 per unit but later it turned out to be Rs 3.86 per unit. The MSEB will be forced to buy power from the Dabhol Power Company (DPC) at Rs 4.78 per unit after completion of the Enron project’s second phase in 2002. The power being purchased from the DPC is costlier than the same bought from other sources, the report says. It also turns down the State energy department’s explanation that the project was cleared in 1993 to overcome the power shortage crisis. ‘‘The committee cannot accept the justification of the hasty decision taken without considering its financial implications,’’it says. The State need not buy power from Enron at such exorbitant rates had it decided to encourage private sector in the country to generate power by natural resources and techonology available instead of entering into agreement with the DPC, the committee has noted. The issue came up before the committee as the Comptroller and Auditor General had rapped the State Government for the provisions in the PPA with the multinational power giant, in its report of 1996-97. In its concluding remarks, the committee has advised the government to think about the permanent burden which falls on the people of the State while allowing foreign investment in the state. Precious land of farmer is acquired for the projects and more precious water is made available alongwith other facilities but still the State has to purchase power at costlier rates. ‘‘This is a serious issue. The Government should give preference to private enterpreneurs in the country while installing power generation projects in future,’’the committee has recommended. The committee is chaired by Congress MLA Vasant Purke and has 24 other legislators from both the houses of legislature as members on it.
