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April 20, 2001
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Enron says it has no plans to divest stake in DPC

Energy major Enron India Private Ltd said on Friday that it has no plans at present to reduce its stake in Dabhol Power Company below 50 per cent nor to sell it.

The US multinational was not pursuing the sale of its stake in the $3 billion 2,184 MW power project in Maharashtra, but will always consider a legitimate proposal 'if it made strategic sense', an Enron spokesperson said here.

Currently, Enron India holds 65 per cent in DPC, which includes MSEB's 15 per cent while General Electric and Bechtel hold 10 per cent each.

Over reports that Enron India was planning to shed its stake and had asked merchant bankers to find a suitable power, he denied any such development and reiterated that DPC had no such plans to move out of the project.

The spokesperson said Credit Suisse First Boston was still scouting for a suitable fifth partner for MSEB's stake.

Meanwhile, DPC lenders would meet on April 23 in London to discuss future course of the project amid the legal tangles involving both the Centre and state government.

Given the fragile circumstances over a four-month long financial fued on non-payment of December and January bills of Rs 1.02 billion and Rs 1.11 billion respectively by State Electricity Board, the spokesperson said DPC had already resorted to the legal course and in the process served a political force majeure and three arbitration notices to state government.

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DPC serves arbitration notice on Maharashtra govt
Govt should honour its obligations, says DPC
Godbole report tabled; moots renegotiation with Enron
Set up probe panel to look into Enron PPA: Godbole panel
DPC waits for MSEB's Rs 1.52 bn Dec bill
DPC invokes counter-guarantee again
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The Money Interview/Enron Action group

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