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July 27, 2001
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Money > Business Headlines > Report July 27, 2001 |
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Centre to broker peace between AES, OrissaDillip Satapathy Waking up to the possible repercussion of the ongoing feud between the US power major AES Corporation and the Orissa government over the running of the state-based distribution firm Central Electricity Supply Company, the Centre has offered to broker peace between the two parties. The Centre's intervention comes even as AES submitted a written proposal expressing its intention to withdraw from Cesco in which it has 51 per cent stake. During a meeting between AES president and CEO, Dennis Bakke and Chief Minister Naveen Patnaik in Bhubaneswar last week, the company was asked to come back with such a concrete proposal. According to official sources, the Union energy ministry has convened a meeting of AES and Orissa government officials at New Delhi on July 30 for the resolution of the Cesco dispute. The energy secretary AK Basu has written a letter to the state government in this regard. The meeting, according to the official sources in Bhubaneswar, is yet unstructured. Sources said, the secretary in the state energy department, DN Padhi, and chairman-cum-managing director of Grid Corporation of Orissa Priyabrata Patnaik will attend the meeting on behalf of the state government. The Centre is particularly worried over the AES-Orissa row as coming in the aftermath of the Maharashtra-Enron controversy, it is expected to have an impact on the wider spectrum of flow of foreign investment into the country. AES chief Bakke, during his India visit last week, had met Union power minister Suresh Prabhu at Delhi before meeting Chief Minister Patnaik in Bhubaneswar. AES is also a front-runner for taking over the Dabhol project from Enron. Meanwhile, a spokesperson of Cesco said, in the written proposal submitted to the state government, AES has outlined "the deep-rooted flaws in the regulatory policy and administrative environment" which has become the cause of the dire predicament for the company. AES has also pointed out that it was impossible for the company to run the business in the present conditions and consequently offered its share in Cesco to the government. Powered by YOU MAY ALSO WANT TO READ:
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