THIRUVANANTHAPURAM, Dec 29: The CPM-led LDF Government has cleared the entry of US-based multinational, Enron Power Energy Corporation Inc into Kerala. Enron will set up the Rs 1,500-crore 513-MW power project, promoted by K P P Nambiar of BPL group, in Kannur -- the only mega private power project in the state which secured fuel allocation.The draft report and details of the tie-up will be handed over to the Government and Kerala State Electricity Board in a couple of days by the company, Kannur Power Projects. The CPM, after confabulations at the highest level, had given political clearance for the project some time back.
Enron's entry is expected to be accompanied by massive investment in the state, with particular concentration on developing an LNG terminal at Azheekal port. Enron was selected as the K P P partner after global bidding.The Government hopes that the Enron tie-up, coupled with the state's attempt to set up a mega petrochemical complex in Kasargod, will revolutionise industrialisation in
Kerala. Enron is currently setting up, under Dabhol Power Company, a 2,450 MW gas-naphtha based power project in Maharashtra, with MSEB picking up 30 per cent stake in the project.
The Dabhol project, which provoked opposition from the Leftists and RSS-led Swadeshi Jagran Manch, had to be renegotiated later. The controversial history of the $ 23-billion worth Enron in the country is likely to attract considerable attention in the state.
With LNG fast emerging as the consensus choice of fuel for coastal power plants, the KPP-Enron tie-up assumes much larger significance.
The Cabinet Committee on foreign investment has already given its nod to Enron to set up a wholly-owned subsidiary to develop an LNG regassification terminal and gas pipeline distribution system. In the South, Enron has decided to form a joint venture with Marubeni Corporation to bid for the proposed $ 2.5 billion 2,000 MW LNG-fired power project at Ennore in Tamil Nadu. The multinational is also preparing to import 10 million tonnes of
LNG per year. Meanwhile, Enron officials in Mumbai confirmed that Enron Corp's India unit has picked up 74 per cent of the equity in a 513-MW power project to be set up in Kerala.
Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.
