The government today discussed with Enron Corp chairman Kenneth Lay the option of hiving off the $1 billion LNG facility into a separate company which can be taken over by state-owned Gas Authority of India Ltd (GAIL) by floating a special purpose vehicle (SPV).
According to sources, the idea mooted by Enron Corp chairman Kenneth Lay also envisaged central power utility National Thermal Power Corporation (NTPC) taking over the $2 billion Dabhol power plant via the SPV route. The new company, which can then avail of tax waiver of about Rs 1,600 crore, would be able to sell the tariff at a lower rate.
While sources said that several other options were also discussed, they added that no concrete solution was forthcoming to the vexed Dabhol project even after two days of elaborate deliberations between Lay and the Centre.
When contacted, a DPC spokesperson said,
