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DF allies submit draft on inquiry in Enron PPA

The allies of the ruling Democratic Front coalition in Maharashtra on Monday submitted a draft of terms of reference for the judicial inquiry to be set up to probe the controversial power purchase agreement.

The draft, finalised by all constituents of the DF except Congress and NCP--the main partners of the coalition-- says the inquiry should examine validity of all agreements, clearances, concurrences, licences, permits or sanctions and the failure of governance, if any, reported by the Madhav Godbole-led Enron review committee.

The draft terms of reference were released to the media by Janata Dal-(Secular) leader Gopal Dukhande in Bombay.

The inquiry should be conducted into the correctness of all representations made by Enron/DPC about project costs, financing and all projections that affect the PPA tariff, it says.

Similarly, circumstances under which the PPA was negotiated and renegotiated, its validity and the circumstances in which the phase II contract were made should be examined, the draft says.

The terms of reference emphasises on examining whether the entire decision-making process was "rational, reasonable and appropriate."

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