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DPC slaps 2 more notices on Maharashtra govt, MSEB

Enron-promoted Dabhol Power Company has slapped two more international arbitration notices on the Maharashtra government and the Maharashtra State Electricity Board under 'state support agreement and supplemental state support agreement'.

"In these agreements, the state government committed to support and encourage further development and completion of the Dabhol project. However, without justification the state has acted in a manner inconsistent with these agreements," a DPC spokesperson said on Wednesday.

He said the state government's actions had adversely and materially impacted the multinational's ability to perform under its contractual agreements.

DPC had served the first notice last week over MSEB and state government's failure to honour the December 2000 and January 2001 bill of Rs 1.02 billion and Rs 1.11 billion, respectively, along with interest.

"We have been given 30 days time and as per the PPA the board will respond to the arbitration notices," MSEB chairman Vinay Bansal said.

He said it was the DPC who had flouted the rules under the PPA and that MSEB has been paying its bills with a set reference rate plus a 2 per cent interest.

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