Subject: Re: Enron collapse
Date: Sat, 01 Dec 2001 17:08:06 +0000



Shyamal,

I stand corrected on details regarding CESC. I haven't followed the Indian 
power scene in nearly three years. But the collective views one read in the 
press and in economic circles, when the Enron controversy raged (1992-1996) 
was that private sector power plants did better than state-run ones. And 
several senior engineers and officials at Tata companies (as well as experts 
like R.K. Pachauri) told me then that CESC had injected a lot of cash, began 
collecting overdue bills, and cut of supply to politically-well-connected 
people who were used to getting free power. This was also told to me, 
anecdotally, over the years, by several Calcutta residents I know well. It 
is possible that in the last couple years the company is in financial 
trouble -- I don't know about that. But many analysts seem to credit CESC's 
management for improving the lot of power supply in Calcutta. Now whether 
WEst Bengal govt still retained a stake, I don't know; if it sets the 
prices, again, I don't know. But private sector management had a significant 
role in improving the efficiency in Calcutta's power situation -- that's the 
impression I received from my interviews in India, and subsequent 
discussions with Calcutta residents (a small sample, comprising of business 
executives, other professionals, journalists, etc, all Indian nationals).

Salil

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