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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