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MSEB not responsible for DPC lay-off: Bansal

Maharashtra State Electricity Board has rejected the allegation that it is responsible for the circumstances in which its estranged partner Enron decided to lay off over 150 employees of the troubled Dabhol Power Company.

"We have been upto-date with our payments including interest to DPC till May 23, 2001, before rescinding the power purchase agreement. In fact it is they who have not paid our Rs 12 billion rebate claim," MSEB chairman Vinay Bansal said in Bombay on Thursday.

Another top MSEB official said DPC has 'not been' fair to the board by making such allegations against it.

"We had made an offer to them stating that we could buy their power on a reduced tariff, but it was DPC which did not pay any heed to our requests," he said.

In a statement, DPC spokesperson has said that it is laying off all its remaining employees including those based at the 2,184 mw power plant in Dabhol.

"DPC was compelled to take this step due to continuing defaults by MSEB, Government of Maharashtra and Government of India, which were responsible for DPC having insufficient funds for staffing purposes," the spokesperson said.

The partners have been locked in several disputes including non-payment of dues upto $64 million by MSEB, in the Bombay high court at a local level and in London arbitration court internationally.

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