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'BSES not interested in DPC stake'

The Bombay Suburban Electricity Supply has denied having any interest in the Enron promoted Dabhol Power Company equity, due to the given uneconomical parameters of the project.

Earlier, BSES was invited by the Industrial Development Bank of India, largest institutional investor in the project, along with other companies interested in the project, for exploring possible solution to the Enron imbroglio.

However, BSES has said that since the beginning they had not shown any interest in DPC due to several factors including cost per unit and use of fuel to generate the power.

''Looking at the present financial state of DPC and its several disputes, and also due to the cost of fuel used by Enron to generate power, BSES had never shown any interest to avail the DPC stake,'' he added.

The high capital cost of the project has cast shadow over the long term viability of the plant as a load supply facility and the high cost of dollar denominated fuel has resulted in unaffordable power tariff.

BSES has said that a complete financial re-engineering is required for viability of the project. When asked about the BSES interest in the DPC stake, following the restructuring process, the official said, 'it is a hypothetical question, how can we say about the future'.

The other participant in the meeting called by the IDBI, Tata Power has also shown preliminary interest in the project provided major issues engulfing the project are properly addressed and solution for the same agreed to by the government.

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