points for singh meet vince ,
please find below a note i had prepared for wade cline who is meeting with a
representative of the prime minister ' s office tomorrow .
i think you may find these points useful .
additionally , i am attaching a copy of a small presentation i made , saturday
in mumbai on roadblocks in the power sector with special reference to wat
needs to be done to start trading ( & its benefits ) .
i have been working with the henwood team that arrived today , and i think a
good part of the data is now in place . i will be arranging meeting with some
officicals from the transmission side and gather any additional data there
too .
krishan got in last night ( i conveyed your best wishes to him ) . we will
hopefully have a useful day with henwood folks tomorrow . i look forward to
being in houston , possibly by the end of the coming week .
hope you and the team are doing well ! !
regards ,
sandeep .
- - - - - - - - - - - - - - - - - - - - - - forwarded by sandeep kohli / enron _ development on
01 / 15 / 2001 01 : 17 am - - - - - - - - - - - - - - - - - - - - - - - - - - -
sandeep kohli
01 / 15 / 2001 01 : 17 am
to : wade cline / enron _ development @ enron _ development
cc :
subject : points for singh meet
wade ,
please find below a brief note on what i feel your tack should be with
n . k . singh ( who is supposed to be a hard negotiator ) . i am assuming here that
this will be more of an introductory meeting where both sides are feeling out
the other . the two meetings i had arranged over the weekend , would
hopefully , have given you a better idea of the thinking of at least these two
people o the issue .
incidentally , in the indian system , the governor of any state is a central
government nominee . he is the eyes and ears of the central govt . in the
state . please see basak ' s meeting in that light . the message he takes will
likely go directly to the pmo in delhi . i will therefore be working closely
to convey the right impression .
for n . k . singh clearly there are three things you would try to convey :
a description of the problem ,
some of the resultant consequences if it is not solved soon enough , and
conveying the fact that there are win - win solutions well within the goi ' s
power to implement , that would in fact enhance his reputation and the
country ' s as one that lives up to its reputation
i would be careful to make the point that we are not going to give up any
value , but are willing to be accomodative to mseb , gom , and goi needs , either
through financial re - engineering , or through getting direct access to the
market in some areas . this will also fly well with enron management that is
more comfortable with market risks than political .
describing the problem
dpc has a ppa , backed by goi mseb ' s
monthy collections not improving - are in the range of rs . 900 cr . / month
mseb , and gom clearly do not have the resources , in the short run ( 3 - 5 yrs . )
to meet these obligations ; hence central intervention is needed .
in a grid of 13000 mw ( maharashtra grid size ) , absorbing an additional 1440
mw ( phase ii ) at one go is difficult ; however if we take western region , grid
size is 42000 mw . clearly absorbing all the power in that framework is much
easier .
to this if we add northern and southern grids , we can probably evacuate out
another 500 - 700 mw through the interconnects . hence , there is definitely
value in looking at this issue at a national level .
additionally , it is not just solvable at that level , but actually answers to
the crying need for power in the country , and hence is a boon for the govt . ,
and should be treated as such .
consequences of not solving the problem
we can call upon the sovereign guarantee , which will cover our partial
payments . however , this would almost definitely lead to a deterioration of
the country ' s credit rating - put back incoming investments into the
petroleum sector ( where private participation program is about to be unveiled
in 25 o we need to get someone to negotiate with . please use
your good offices to quickly form a representative group that includes
central , state govt . , and seb representatives so that we can work on the
solution .
without active participation from pm ' s office , we are likely to waste
precious time bouncing between the seb , gom , and various ministries of goi .
hope this helps .
regards ,
sandeep .
points for singh meet
vince ,
please find below a note i had prepared for wade cline who is meeting with a
representative of the prime minister ' s office tomorrow .
i think you may find these points useful .
additionally , i am attaching a copy of a small presentation i made , saturday
in mumbai on roadblocks in the power sector with special reference to wat
needs to be done to start trading ( & its benefits ) .
i have been working with the henwood team that arrived today , and i think a
good part of the data is now in place . i will be arranging meeting with some
officicals from the transmission side and gather any additional data there
too .
krishan got in last night ( i conveyed your best wishes to him ) . we will
hopefully have a useful day with henwood folks tomorrow . i look forward to
being in houston , possibly by the end of the coming week .
hope you and the team are doing well ! !
regards ,
sandeep .
- - - - - - - - - - - - - - - - - - - - - - forwarded by sandeep kohli / enron _ development on
01 / 15 / 2001 01 : 17 am - - - - - - - - - - - - - - - - - - - - - - - - - - -
sandeep kohli
01 / 15 / 2001 01 : 17 am
to : wade cline / enron _ development @ enron _ development
cc :
subject : points for singh meet
wade ,
please find below a brief note on what i feel your tack should be with
n . k . singh ( who is supposed to be a hard negotiator ) . i am assuming here that
this will be more of an introductory meeting where both sides are feeling out
the other . the two meetings i had arranged over the weekend , would
hopefully , have given you a better idea of the thinking of at least these two
people o the issue .
incidentally , in the indian system , the governor of any state is a central
government nominee . he is the eyes and ears of the central govt . in the
state . please see basak ' s meeting in that light . the message he takes will
likely go directly to the pmo in delhi . i will therefore be working closely
to convey the right impression .
for n . k . singh clearly there are three things you would try to convey :
a description of the problem ,
some of the resultant consequences if it is not solved soon enough , and
conveying the fact that there are win - win solutions well within the goi ' s
power to implement , that would in fact enhance his reputation and the
country ' s as one that lives up to its reputation
i would be careful to make the point that we are not going to give up any
value , but are willing to be accomodative to mseb , gom , and goi needs , either
through financial re - engineering , or through getting direct access to the
market in some areas . this will also fly well with enron management that is
more comfortable with market risks than political .
describing the problem
dpc has a ppa , backed by goi mseb ' s
monthy collections not improving - are in the range of rs . 900 cr . / month
mseb , and gom clearly do not have the resources , in the short run ( 3 - 5 yrs . )
to meet these obligations ; hence central intervention is needed .
in a grid of 13000 mw ( maharashtra grid size ) , absorbing an additional 1440
mw ( phase ii ) at one go is difficult ; however if we take western region , grid
size is 42000 mw . clearly absorbing all the power in that framework is much
easier .
to this if we add northern and southern grids , we can probably evacuate out
another 500 - 700 mw through the interconnects . hence , there is definitely
value in looking at this issue at a national level .
additionally , it is not just solvable at that level , but actually answers to
the crying need for power in the country , and hence is a boon for the govt . ,
and should be treated as such .
consequences of not solving the problem
we can call upon the sovereign guarantee , which will cover our partial
payments . however , this would almost definitely lead to a deterioration of
the country ' s credit rating - put back incoming investments into the
petroleum sector ( where private participation program is about to be unveiled
in 25 o we need to get someone to negotiate with . please use
your good offices to quickly form a representative group that includes
central , state govt . , and seb representatives so that we can work on the
solution .
without active participation from pm ' s office , we are likely to waste
precious time bouncing between the seb , gom , and various ministries of goi .
hope this helps .
regards ,
sandeep .