THIRUVANANTHAPURAM, December 29: The Communist Party Marxist-led Left Democratic Front Government in Kerala has cleared the entry of the United States-based multinational Enron Power Energy Corporation Inc into the state. Enron will set up the Rs 1,500-crore 513-MW power project, promoted by K P P Nambiar, in Kannur. It is the only mega private power project in the state to secure fuel allocation.The draft report and details of the tie-up will be handed over to the Kerala State Electricity Board in a couple of days by the company, Kannur Power Projects (KPP). 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 KPP's 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 Limited, a 2,450 MW gas-naphtha based power project in Maharashtra, with Maharashtra State Electricity Board having 30 per cent equity stake. The Dabhol project, which provoked opposition from the Leftists and Rashtriya Swayamsevak Sangh-led Swadeshi Jagran Manch, had to be renegotiated later. The controversial history of the $ 23-billion worth Enron is likely to attract considerable attention to 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 for setting 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.
Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.
