[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

Enron India problem



---------------------------------------------------------------------
Please help make the Manifesto better, or accept it, and propagate it!
---------------------------------------------------------------------
Following my original mail on the subject, I have had the following mail,
in my 
discussion with the person who sent me the original mail, which I think may
be 
worth the consideration of our list of members.

prabhu guptara



Sent: Dienstag, 27. März 2001 23:56
Subject: Re: Enron India Problem

Dear Prabhu:

Thanks for your thoughts on Enron/Dabhol. I'm glad you circulated the text.

I agree with you generally about the difficulties in India, but I wonder
about the corruption issue (since the US Foreign Corrupt Practices Act is a
pretty severe inhibiting factor for virtually all US firms). Maybe I'm
naive -- though I've had a lot of direct experience with such problems
worldwide.

One explanation (more persuasive, to me at least)  is that Enron is among
the most arrogant firms I've ever encountered; they sought and took
absolutely no advice on how to do "their" deal in India, or elsewhere, as I
am told.

Moreover, Enron was stupid in political terms to get so identified with
politicians, first with Sharad Pawar, then with the Shiv Sena state
government. However, other power firms had equally bad experience without
such links -- Cogentrix's Mangalore deal was a horrible example. (In that
case, court suits literally harassed them into canceling.) I'm not sure
exactly what pushed Powergen into leaving, since they had a good partner in
the Aditya Birla group.

The worst aspect of private power in India is the State Electricity Boards
(SEBs) controlling distribution. Mind you, I don't say you have to let
generating firms also distribute, but the SEBs are bankrupt -- both
inefficient and politicized to the extreme. Merrill Lynch recently proposed
that they be sold off one by one, probably to private Indian operators.

As you see, I'm deeply interested in this subject -- I tracked it from 1992-4 
and did some private consulting on it in 1996-7. I've been looking for the 
right client to engage on it again, but so far no luck.

Naturally, I'd be interested in anything your circuit turns up on the subject.

Warm regards, g

----- Original Message -----
From: <prabhu.guptara@ubs.com>
Sent: Wednesday, March 21, 2001 12:00 PM
Subject: RE: Enron India Problem


Thanks for the piece. I know the problem but had not seen the piece.
A mess, as you say....

Till we have political reform in the country and stop being ruled by thieves
and liars I am afraid there is no salvation for India. That itself cannot
happen till there is a moral transformation in India. the present political
parties merely side-step the question.

For convenience, I am blind-copying a friend on this for his interest, and
also copying the msg to an internet-based discussion group which is trying to
develop the best policies for India. I hope you don't mind as I have removed
any way of identifying you as the sender of the msg....

many thanks again and warm regards

prabhu


--------------------------------------------------------------------------
This is the National Debate on System Reform.       debate@indiapolicy.org
Rules, Procedures, Archives:            http://www.indiapolicy.org/debate/
-------------------------------------------------------------------------