Tata eying Enron project

Tata eying Enron project

NEW DELHI (AFP): Indian corporate giant, the Tata Group, is willing to buy a stake in U.S. energy firm Enron Corp's three billion dollar Dabhol power project in western India, the Economic Times said Saturday.

"We are watching the Dabhol developments very closely and will conceivably think of buying it, if it makes sense for us," Tata Group chairman Ratan Tata said at a shareholders meeting in Bombay, India's financial capital.

The Enron-backed Dabhol Power Company's 2,184 megawatt power plant stopped generating electricity in May when its sole client, the Maharashtra State Electricity Board (MSEB), failed to clear its long-overdue power bills.

After the payment defaults, MSEB refused to buy any more power in a dispute over tariffs. Enron later announced it was calling off the contract.

Replying to questions posed by shareholders, Tata said a final decision would be taken after considering all factors.

"We are in discussions with the government and they will continue. It is an LNG-based plant and the power will be expensive. A final decision will made only after taking this factor into account," he said.