Tuesday, March 23, 2010

Enron lives barely in India

Enron story will not be forgotten.Enron an integrated gas, power and Internet provider had plans to generate electricity,fast Internet on power lines Importing liquefied gas and regassification plant in India .In a way a whole new system to bring kicking and screaming India,s power sector to the twentieth century.It would have also used large servers from Sun to provide fast Internet.Then California scandal broke and it filed for largest bankruptcy in the history.
A real opportunity was presented for government of India or other entity buy the Indian project and run with it. The project had outstanding merits .It was not bought by any
entity with interests in development of India.Project failed for the in aptitude of politic India with all its flaws .

Ten years after looks like plant is coming back to life .Still the problem remains ,raw material for power generation that is Gas and coal prices are controlled by the powers be ad the plant is at he mercy of that.Though Maharashtra govt had guaranteed the purchase price for the power.I do not know if that remains in tact .Price charged to the customer is less than the cost. It would be OK if government had a plan eliminate this imbalance.

Elimination of power shortage and banning of gas and diesel power generators for private enterprises is the only way for India to be competitive in all the development sectors.This is the only way to control pollution in near future.

P.s . My investment group was wiped out of its investment in Enron as we all be on its surivability.

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