Re: Enron

[Npsingh123@aol.com]

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Some points to be made on the Enron mess.

1. It is imperative that deals like Enron should be made with greater
transparency with adequate time given to the public and interested bodies to
make their objections. Was the Enron deal made in secrecy by the then
government or was the rest of the country engrossed too much in restoring our
National Pride.

2. Whatever the merits or demerits of the Enron arrangement if we do not
honour a contract it will only discourage foreign investment and cause harm
to the country in the long run.

3. Really the government should not make its business to determine or
negotiate power tarriffs for same reason it should not determine the price of
onions or the procurement price for wheat. Government should facilitate and
monitor free market only. If Enron had dealt with private distributors in the
first place, instead of the Government, we probably would already have power
flowing through to the customers by now.

4. I will be surprised that if in our power starved country there will not be
enough customers who will be willing to pay even the higher tarriff for
electricity given that we still do not produce enough for our needs. Its only
a question of finding a go between from Enron to the customer. The government
should get out of that business sooner rather than later.

5. For this mess the best solution will be either to honor the contract in
total or renegotiate. However I will not be too surprised if Dabohal is
eventually nationalised.


In a message dated 1/15/01 8:34:11 AM Central Standard Time,
zoot@squishyfx.com writes:

<< > I agree, it was indeed stupid of them to sign it. Please note that there
 > were plenty of Leftists around, who never even mentioned this fact
 > originally, and are only crowing gleefully about it now.

 yes its a case of dumb and dumber but whether Leftists are crowing or
 Rightists braying we still have a mess on our hands. it doesn't diminish the
 responsibility of the govt that closely examined and signed the contract.


 > Congress trying to save us from overpriced power, by choosing the route of
 > no power at all? They had decades, and they didn't do anything.

 But when Tata can give you power for $2 why get it from Enron for $8 ?

 >
 > The only recourse I can see, is if someone looks into any kickbacks or
 other
 > fair means that might have been used to clinch the deal. Failing that, I
 > would suggest that alternative power projects be supported. Even with
 > Dhabol, there is still a need for power.

 How do you get out of the sovereign gurantee contract ?  Instituational
 insanity is not yet an admissible reason. pakistan couldn't do it with
 hubco, even with huge claims of kickbacks etc..


 -rakesh
  >>


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