'Dabhol Is Our First - Born '

The Dabhol saga has obviously not dampered your enthusiam.

Dabhol is like a first - born. No problems we have experienced can overshadow it. India ranks in the top three countries Enron has earmarked for investment. Our experience and knowledge of international financing can go a long way in raising the investment to generate the vast energy needs. India’s most pressing problem is that of fuel to meet this demand. If you have to spend foreign exchange in importing fuel, L N G  makes sense in terms of value for dollar. Enron is the largest marketer of natural gas in North America and we have the ability to bring this L N G into India.

Of the $10- billion investment, how much would Indian companies be expected to contribute?

Since the proposal is at such a preliminary stage, it is difficult to be specific .Also, the $10 billion is a mere estimate.

So you have along way to go ?

Absolutely. In fact, we anticipate that the Government may want to set up a study committee of sorts consisting of experts,  technocrats and bureaucrats to consider our proposal. The idea for the proposal formed because we have been approached  by various foreign investors who have watched the Dabhol project. They said they would like to come into the country with  someone who had acquired a knowledge of the Indian system with proven experience of structuring contracts that could get financed in international capital markets as well as with FIs.

But will resource-starved Indian companies be able to contribute equity ? Don't you agree that raisng debt would also not be easy for Indian companies ?

The projects could be non-recourse funded, in which case strong project contracts and P PAs that have clear risk allocation will help companies raise debt on the merits of the project itself. Here ’s where our knowledge of non-recourse funding can help

You seem extremly upbeat in contrast to other foreign investors.

Even when we came in in 1992, other investors were cautious. Our faith in India’s legal system has been borne out.