Enron Corp.'s power project, canceled by Maharashtra state in August, may live yet. As many predicted, the state seems set to renegotiate the $2.8 billion deal. Talks are expected in response to Enron's offer to make changes, including fuel sources that would lower the electricity tariff.

But the left-wing Rashtriya Swayan Sevak and other political parties are dead set against renegotiating. The RSS has managed to escalate the controversy into a national debate. Politically, though, the state government--a coalition of India's main opposition Bharatiya Janata Party and the regional Shiva Sena Party--may be making an astute move. Says Anand Kumar, a political scientist at Jawaharlal Nehru University: "It says the BJP is strong enough to handle international forces on its own terms."

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