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Pawar, Deshmukh discuss DPC's 'possible' pre-termination notice

Nationalist Congress Party chief Sharad Pawar and Maharashtra Chief Minister, Vilasrao Deshmukh, on Saturday held a meeting to discuss the state government's future strategy vis-à-vis a 'possible' issuance of pre-termination notice by Dabhol Power Company to the state electricity board.

"We have taken stock of the fragile situation and also discussed the reports on DPC lenders' meet at length. A strategy would be chalked out, as Enron officials are again meeting the Godbole Committee on May 23," Deshmukh said after the two-and-half hour long meeting in Bombay.

Pawar, who was briefed for the second time on the current crisis, was updated on DPC's stand on the pre-termination notice and that of MSEB's with reference to the Rs 4.01 billion penalty, which the US energy major has refused to even recognise, let alone pay, a state government official who attended the meeting, said.

The official said MSEB chief Vinay Bansal told Pawar and Deshmukh that 'the situation will further worsen after DPC commissions its phase-II on June 6 and that the loss-making board was in no position to pay the Rs 2 billion plus fixed charges henceforth.

"In no circumstance, it is financially viable for MSEB to buy the phase-II power," Bansal emphasised.

The meeting also discussed the recent power crisis in the Mula-Pravara region of western Maharashtra, which has been identified by MSEB as a default region.

"Mula Pravara has been defaulting in its payments, which runs into several billions of rupees," the official said.

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