Enron withdraws from India
Enron has pulled out of two projects in India. Enron India and Wescopower Generation have ended their alliance in the Indian market. Wescopower had proposed constructing a 500 MW LNG-fired power plant at Belgaum but it is understood that Enron had reservations over the LNG supply.
Wescopower may now lose the project because it had initially opted for naphtha and later changed to LNG “based on Enron`s commitment”. It appears unlikely that the government will allow any further change in fuel for the project. It is unclear why Enron has withdrawn from the project.
Enron`s decision follows its withdrawal from the Kerala power project. Enron Corp. and its Indian partner are terminating their agreement to develop the 513 MW power project in the southern state of Kerala. Enron said that the project was not progressing quickly enough which adversely impacted the economics of the deal. Since construction of the project had not begun, Enron`s investment “had been minimal”.