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Maharashtra govt, MSEB may have to cough up Rs 170 billion upfront damage

Maharashtra government and the state electricity board (MSEB) may be required to cough up about Rs 170 billion as damages to US energy major Enron-promoted Dabhol Power Company if the issue is not resolved within six months of serving of the preliminary termination notice.

"We will have to pay approximately Rs 170 billion upfront if both the parties do not resolve the issue amicably within six months," a senior state government official said in Bombay on Saturday.

Meanwhile when contacted, state energy secretary V M Lal said the state government was "not surprised" by the DPC move as the multinational had followed a particular pattern.

DPC first issued an arbitration notice, then invoked the political force majeure, termed their attendance at the Godbole panel meeting as a "mere courtesy call" and then followed the tremendous pressure from the foreign lenders, he added.

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