Deshmukh asks Centre to free

Deshmukh asks Centre to free
PRESS TRUST OF INDIA

NEW DELHI, MAR 3: Maharashtra today asked the Centre to handle the controversial Dabhol Power Project, promoted by the U S energy major Enron, following the invocation of counter-guarantee by project authorities due to payment default by the state after prolonged wrangling over the cost of power.

``I have told the Prime Minister that he should intervene and free us by asking NTPC and power trading corporation to takeover,'' the Chief Minister Vilasrao Deshmukh said after a meeting of chief ministers convened by the Centre on power sector reforms.

Deshmukh told reporters that this was necessary as highcost of buying power from Enron was `beyond our capacity' and this has been compounded further by the standing charges as also `take or pay' clause and penalty clause.

He said he has requested the Union power ministry to send one of its representatives to the meetings of Energy Review Committee set up by the State under the charimanship of Madhav Godbole to look into Dabhol project and its impact on the Maharashtra State Electricity Board (MSEB).

At the meeting of the Chief ministers, Deshmukh said the `biggest problem' which MSEB is facing is the burden of buying power from Dabhol Power Company, especially from its second phase which was `renegotiated'' by the then government in Maharashtra led by `two important constituents of the present NDA government''.

Just before the meeting, Deshmukh convened a meeting of Congress Chief ministers to decide on common strategy on the problems faced by them in power sector. Digvijay Singh, Ashok Gehlot, S M Krishna were prominent among those present.