NEW DELHI, June 28, 2001 — India today welcomed an AES subsidiary to take over Enron’s troubled Dabhol generating plant if both companies give their blessings.

Enron Corp. has threatened to give up on the $2.9 billion power project after years of disagreements with the Maharashtra State Electricity Board, but federal Power Minister Suresh Prabhu said the Indian subsidiary of U.S. electricity firm AES Corp. can take over operations of the troubled plant, Reuters News Service said.

The AES subsidiary voiced some interest in the project but had not made or received a formal proposal.

The government of India has offered to help Enron and Maharashtra resolve the dispute, and asked the Central Electricity Authority (CEA) to start talks with power-deficient states if they were willing to buy Dabhol’s power.