New Delhi: Crisis-ridden Enron's Dabhol Power project (phase I) may start power generation in the next two to three weeks after a gap of about a year as a result of renewed negotiations between financial institutions, led by Industrial Development Bank of India (IDBI), and Maharashtra State Electricity Board.

Both MSEB as well as IDBI-led consortium have expressed keenness to restart the operations immediately to expedite the process of revival of the project and to stop the deterioration in the condition of the plant, highly placed sources said.

The FIs have also suggested that power generated from DPC Phase-I can be sold at a lower rate now and the arrears, if any, could be settled once the final deal for the project was struck, they added.

When contacted, Union Power Secretary R V Shahi said, "The Centre has no role to play in the Enron issue. But speaking on technical grounds, it will be desirable that lenders and MSEB decide on running of the phase I of the project as soon as possible."

In case the negotiations fructify, either MSEB or National Thermal Power Corporation could be asked to operate the 740 mw plant till a solution was found to the financial crisis of the project.

Private companies including Tata Power and BSES are in the fray for buying stake in Enron for which the process of due diligence was halted due to litigations, sources said adding that at this juncture priority should be to restart the plant.

PTI