U.S. firm to win $1.4b deal

U.S. firm to win $1.4b deal

BANGALORE, India (AFP): U.S. power giant Cogentrix Energy Inc. was reassured yesterday of winning a US$1.4 billion contract to build a power plant in the southern Indian state of Karnataka.

The newly-elected Karnataka government told visiting U.S. Commerce Secretary Ron Brown in Bangalore, the state capital and India's leading hi-tech center, that a final agreement would be signed with Cogentrix in a month's time.

There was uncertainty about the project following the assumption of power in Karnataka by the centrist opposition Janata Dal, which unseated the ruling Congress (I) party in December elections.

Chief Minister Deve Gowda said the commitment given to Cogentrix by his government's predecessor would be honored.

"Any investment is welcome in sectors like power generation, telecommunications, expressways and food processing," Gowda said. "We will honor the commitment with Cogentrix."

Brown and Gowda told a joint news conference that the plant would be commissioned by 1998.