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Maharashtra picks Godbole to lead renegotiations with DPC

The Maharashtra government has decided to appoint former bureaucrat Madhav Godbole, who had recently reviewed Dabhol Power Company's power purchase agreement with the Maharashtra State Electricity Board, to lead the expert team for renegotiating the PPA following the US energy major's threat to terminate the agreement.

An official order would be issued on Monday and the experts' committee would have to consider the recommendations and terms of reference put forth by the Godbole Review Committee, state government sources said in Bombay on Saturday.

Sources said no time-frame had been set, but "it will all depend on the other side - the DPC -- also participating in resolving the imbroglio".

"Godbole has been chosen to head the renegotiation team as he knows each and every minute detail of the 2,184 mw project," they said, adding that at least two of the five members of the Godbole panel -- Deepak Parekh and E A S Sharma -- would be nominated on the renegotiations committee.

Sources said MSEB chairman Vinay Bansal and central power utility National Thermal Power Corporation's representative would also be included in the panel.

On Friday, Maharashtra Chief Minister Vilasrao Deshmukh had categorically stated that he was hopeful of renegotiating the PPA even though Enron was contemplating serving of notice terminating power supply to the state.

The chief minister maintained that termination of PPA between DPC and MSEB would be 'harmful' to both and that Enron should not take any 'harsh decision' in the matter.

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