ENRON BAILED OUT BY THE WORLD BANK
Scott,
Here's a stinker, Enron decides to screw the citizens of Maharastra state and state fights back. So the World Bank is now trying to put the screws to the Indians...
riskcenter.com
July 31: Electricity Risk – World Bank Asks Indian State To Break Up State Utility’s Functions
Location: New Delhi
Author: Singh Balwinder, RiskCenter Asia-Pacific Correspondent
Date: Wednesday, July 31, 2002
The World Bank has asked the Indian government to unbundle the ailing Maharashtra State Electricity Board (MSEB) into a transmission company and several generation and distribution companies.
These companies should operate in a commercial environment under the regulatory framework of the Maharashtra Electricity Regulatory Commission (MERC).However, it has cautioned that state power sector’s growth would depend to a large degree on the outcome of the Enron Corp.’s 2,184-MW Dabhol project’s arbitration process.
Enron abandoned the project after MSB defaulted on payment for the purchase of electricity. The World Bank, in its exhaustive report on “Maharashtra: reorienting government to facilitate growth and reduce poverty,”, has suggested that the government should ensure political and bureaucratic commitments to reform, monitor its progress, improve public service delivery and governance and concentrate on core public services.
The state cabinet has set up a cabinet sub- committee to finalize the draft Fiscal Responsibility Bill which is likely to be tabled in the state legislature during the monsoon session beginning from July 29. For the white paper on power sector reforms, chief minister Vilasrao Deshmukh has already announced that the Maharashtra State Electricity Board (MSEB) would give its draft by July 31 and the final white paper is expected to be released by September-October this year.
The Wold Bank has said that the state’s fiscal stress, be it due to power and irrigation subsidies or the losses in cotton and sugar interventions, has a close connection with the rural sector.
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Compare to this expose of the malicious schemes of the World Bank crowd:
gregpalast.com |
