14 November 2008

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ENRON,DPC and Darkness in Maharashtra

ENRON,DPC and Darkness in Maharashtra
Enron power project a big corruption or mismanagement by govt.of india and maharashtra.
Lets understand the Enron ,a big dream lost because of greedyness or corruption or our govt.system
who is responsible that enron project failed after goverment of india, govt.of maharashtra
spending millions of dollers on project.
In short lets go to journey of Enron is it a journey of courruption or lack of education of govt.authorities.
This story statrs in a year 1992 when congress govt opened energy sector to foreign
1-on or around june 151992 ,Enron officials and General Electric arrived in New Delhi and
met with officials of the central government.
2-Memorandum of Understanding: Two days after that, the company delegation arrived in
Mumbai and reviewed sites along the coast. Following their survey, they met with
representatives of the government of Maharashtra, and on June 20, 1992, a Memorandum
of Understanding (MoU) with the state government was signed to build the Dabhol Power
3-Now when this deal was going on our govermnet did not enqure about enron, our
goverment do not have knowledge about this project like how it will work like technical
knowledge, and govermnet didnt call the scholars from the indian energy sector to finalalise
the deal or to make a contract of 3 billion american dollers that is 10 000 crores rupess of
that time.
4-Neither the balance sheet and annual accounts of Enron, nor any information about its
activities, area of operation, its associates, etc, was obtained by the government .
5-The World Bank thus determined that the MoU was "one-sided" in favor of Enron the MSEB would have to pay the company for electricity at a prescribed rate, regardless of
whether the electricity was actually available, within 60 days.
6-the MSEB had agreed to a guaranteed minimum fuel purchase, while the fuel supplier was
not concurrently bound to provide a minimum quantity of fuel; and the MSEB had not verified
whether the price of fuel was economical. Consequently, the CEA concluded that the "entire
MoU is one sided" in favor of Enron and its partners. CEA IS government of India's Central Electricity Authority (CEA).
7-November 26, 1993, gave a provisional clearance to the project which would allow it to be
finalized. The government of Maharashtra took this as a final clearance and within a week the
final contract - the power purchasing agreement - was signed between the government of
Maharashtra and the Dabhol Power Corporation, to last for 20 years.
9- after this govt. of maharashtra gave guarantee that if state dont pay ,enron can take any
state property .A counter-guarantee was signed on September 9, 1994, by the government
of India, which by separate action also waived sovereign immunity.
10-Significantly, the agreement was treated as highly confidential and the MSEB and the
DPC refused a copy to the Mumbai Grahak Panchayat, which was one of the main
opponents of the project
property of india is a personal property of cm or pm of india. If u know ple tell me.
12-The MSEB promised to buy all the high-priced power produced by Enron, whether there
was demand or not, and even if cheaper power were available from its own generating
plants. These contracted annual payments to Enron would amount to half of Maharashtra's
entire budget expenditure.
13-However, the contract shields Enron from Indian jurisdiction as all disputes must be
settled under English law in England; An assurance was given that the project would not be
14-The project authorities carried out no environmental impact assessment;Enron paid $20 million as "educational gifts". Critics consider these payments to be bribes
to clear the project;The power purchase agreement between the DPC and MSEB was
initially kept secret from the public,
15-It was supposed to supply energy-hungry India with more than 2,000 megawatts of
electricity, about one-fifth the new energy needed by India each year.
16-To secure supplies of liquefied natural gas for the project, Enron lobbied New Delhi to
change its tariff system, which had been designed to discourage energy imports. Enron got
India to slash its duty on imports of liquefied natural gas from 105 percent to 15 percent.
17-The Bharatiya Janata Party (BJP) and the Shiv Sena accused the ruling Congress Party
of selling out the people of Maharashtra. Local BJP leader Gopinath Munde threatened to
"throw Enron into the sea."
18- this is year 1995 now comes into picture other indian political parties
19-By mid-1995, after local elections, the state government of Maharashtra was in the hands
of a BJP and Shiv Sena coalition
20-Enron renegotiated parts of the deal. On Jan. 8, 1996, Enron and the state government
of Maharashtra BJP and shivsena.
21- question for BJP and shivsena before getting elected what you said and after winning
what you did was it not betrayal of maharashtra ? what you think ?
22-May 1997 incident, the National Human Rights Commission of India found the tactics of
local police forces to be "unjustified" and criticized Maharashtra Chief Minister Manohar
Joshi for giving orders to target the activists.
23- After year 2004 enron become bankrupt there many officials in usa weare sent to jails
24- in 1999 enron produced electricity for few months but price was so high
mscb,maharashtra goverment didnot pay money and company stop working. then enron
filed suit,complaint in london court for 26000 crore and as a result of guarantee by
govermnet of india, payed 26000 crore to Enron.
25- Currently DPC is producing only 350 mw power.
Because of all this mismanagement and courrption , Today Maharashtra is still in darkeness and will stay in darkness for many coming years..