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Centre begins conciliation process with DPC

The Centre on Saturday began the first round of conciliation process with US energy giant Enron-promoted Dahbol Power Company to resolve the dispute over outstanding dues owed by Maharashtra State Electricity Board to the $2.9 billion project, which has since shut down operations.

The two sides declined to comment on the proceedings of the closed-door conciliation proceedings that would continue over the next three days.

The Centre is represented by Law Commission chairman and former Supreme Court Judge B P Jeevan Reddy while DPC has appointed former Chief Justice of New South Wales Sir Lawrence Street as its representative on the three-member panel.

Former New Zealand high court judge David A R Williams is the third conciliator, jointly chosen by both the parties, official sources said.

Attorney General Soli Sorabjee, on behalf of the government of India, is believed to have contested invocation of its counter-guarantee by DPC after MSEB and the state government defaulted in honouring Rs 2.13 billion electricity bills for December 2000 and January 2001.

The Centre, however, had not honoured its counter-guarantee for the 740-MW phase-I of the DPC on the advice of MSEB and the Maharashtra government which claimed that DPC had failed to honour Rs 4.01 billion emanating from short supply of power and the dues must be adjusted against them.

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