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Enron, Maharashtra finance minister hold talks

Y Siva Sankar in Bombay

Even as Maharashtra's precarious financial position faces intense media scrutiny, in the wake of MSEB's defaults in payment to the Dabhol Power Company, Jayant Patil, the unruffled state finance minister, is trying his best not to get distracted from the "more important task" of preparing Budget 2001.

When rediff sought his comments on the MSEB-Enron controversy, Patil sought to downplay his ministry's role in the affair.

"How am I to explain the MSEB's finances?"

Asked why the state government is reluctant to bail out the state-owned power utility, Patil said: "As far as I know, MSEB is yet to make a formal request for financial help. The MSEB top brass is likely to meet with me later today (Tuesday)."

(Media reports have quoted Chief Minister Vilasrao Deshmukh as saying that the state government would not extend any financial help to the MSEB).

Patil sought to steer clear of questions about the uneasy relationship between the state government and Enron India Limited. "I'm concentrating on preparing the state budget for 2001-02."

On the health of the state treasury, Patil said he has decided not to say anything at this point in time. "I've already started work on the budget. So I ought not to speak on the state finances because invariably such a discussion would veer around to the budget. Except the traders, whose feedback I'm keeping in mind while formulating the budget proposals, I'm not interacting with anyone."

Pressed further, Patil said: "What's there to talk about state finances anyway? If I say anything, it will only draw criticism from the Opposition."

Later, Patil had a 40-minute closed-door meeting with a team of top officials of the Dabhol Power Company at his residence in south Bombay. Neil McGregor, president and chief executive officer, led the DPC team.

Soon after the meeting, McGregor spoke briefly to rediff. "I'd a very good meeting with the finance minister," he said. "I don't want to say anything more at this point in time."

Patil, too, refused to elaborate. "I don't want to discuss Enron at all."

Asked when the DPC would resume power generation at Dabhol, McGregor said: "I don't know. Ask the MSEB. They should know."

Is Enron India really serious about invoking the letters of credit and counter-guarantees against the state and central governments? "No comment," said McGregor.

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