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Enron Mail |
You may want to review this for our meetings.
---------------------- Forwarded by Jane Wilson/ENRON_DEVELOPMENT on 02/21/2000 07:43 PM --------------------------- Jane Wilson 02/21/2000 07:43 PM To: Mark Schroeder@ECT cc: Subject: Mega power status There may be no advantages for us in this megaproject status other than the privilege of becoming fully regulated. However, the Ministry is considering us and Ken Lay made big announcements to the press. After these announcements, I pulled a team together on Dabhol strategy. The conclusion was that now that we've made our application and annoucement (noone asked me. See below), we must keep up the pretext of appearing to seek the mega project status to look like we are trying to help MSEB. The consensus of the group was that probably the whole idea of megaproject status will bite the dust. Unbenownst to me, a number of letters were filed (with the Ministry, with MSEB and with CERC) requesting mega power project status. A letter was filed with the Central Electricity Regulatory Commission (CERC) requesting that CERC "use its good offices" to obtain this status for Dabhol. In a public forum -- a panel that I moderated at a conference, Dr. Rao referenced this letter as one filed by a "multinational" corporation that wouldn't have filed it in its own country, improperly asking for the use of influence. When he sat back down next to me, Dr. Rao leaned over and whispered that it was Enron, that the name was Sandeep Kohli, and that he was certain I didn't know about it. I subsequently formally requested its withdrawal, much to Rao's relief. This was Sanjay's idea. P.S. it's hot in Mumbai now -- about 90 degrees or so in the daytime. ---------------------- Forwarded by Jane Wilson/ENRON_DEVELOPMENT on 02/21/2000 07:37 PM --------------------------- Jane Wilson 02/13/2000 12:32 AM To: Wade Cline/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Subject: Mega power status Here is the hand out on mega power project that I handed out in our strategy meeting in January. Please note that in the Monday, January 24 Business Standard it was reported that the next tranche of mega power projects may get no tax benefits. "The Union power ministry may not offer tax sops to the projects presently under consideration for mega power project status. Official sources confirmed that the new projects would not be offered benefits like customs duties waiver, offered to the mega projects cleared last year. The only benefit these projects are expected to receive is sale to the Power Trading Corporation (PTC) -- whereby the state risk on independent power producers (IPPs is transferred to PTC. Such sops do not have a major impact on the project's tariff, as was initially calculated. The power ministry is considereing a proposla to accord mega status to eight projects, including the Dabhol venture in Maharashtra. . . . . Sources however, said mega project status would onl be granted on the basis of the tariff quoted by the projects under consideration. The Union power ministry has already formed a committee which will analyse the tariffs for these projects so as to accord them the status. They said that the committee would be examining the tariffs in accordance to similar project cleared by the Central Electricity Authority. . . . Mega power projects are large interstate power venture selling power to more than one state through the Power Trading Corporation. The 18 projects that have been notified as mega power projects get special benefits in terms of the customs duty waiver and will enable te government to obtain competitive tariffs from projects. These project also get deemed export status wherein domestic equipment suppliers will be entititled to duty drawback and refund of terminal excise duty." I now have the Availability Based Tariff Order (issued prior to my being involved in India) and will analyze it. This order will apply to mega power projects as you see in the handout. I want to do a full regulatory analysis for us in the next month. Please let me know what our current strategic thinking is on the mega project issue. I still think that this would not be to Enron's advantage. However, being realistic, something will have to change. I just don't think submitting ourselves to regulation by the CERC with one buyer the PTC is to our advantage anyway. With potentially no tax advantages, what are we thinking? However, as we discussed in the meeting, we must continue the pretext. What happens if the dog catches the car? On a separte subject, I know you are busy with the refocus of our development efforts, but obviously I would like to spend some time with you with regard to my reassignment to the India region only (at my suggestion, by the way). Since I'm returning to the US on Thursday night, the 18th, we may have no face time until my return the 28th. Is that right? Is the therapy couch ready in your office? From what I hear from my perch in the TERI forum in Agra and Delhi (now Mumbai) there is lots of doom and gloom in the Mumbai office. Certain resumes are being prepared, and there seems to be a general feeling that Enron will embark on a several-year wrap up/sell down effort. I am planning to go to the South Asia forum in Kathmandu. Even with our refocus, it strikes me that the contacts with DOE and Indian embassy and Indian personnel will be most worthwhile. Let me know if you disagree. ---------------------- Forwarded by Jane Wilson/ENRON_DEVELOPMENT on 02/13/2000 12:12 AM --------------------------- enron india From: Wade Cline 02/11/2000 06:26 AM To: Jane Wilson/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Subject: Mega power status Jane, Please send me via e-mail or fax a copy of the note you put together and presented a few Saturdays ago. This was the note about that had the checklist of items required for a project to be a mega project and had the status of DPC on each item. Thanks, Wade
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