Search the Internet          Tips  Sites: Finance, Investment

'We welcome DPC's pre-termination notice'

The Enron Virodhi Andolan on Saturday welcomed Dabhol Power Company's move to issue a preliminary termination notice to Maharashtra State Electricity Board.

"We welcome the move because we can see a beginning to the end of Enron crisis in the country," EVA member Pradyumna Kaul said in Bombay.

He said the state government had been "irresponsibly sleeping for over a month for taking any action, while DPC was busy packing itself and its people out of the country."

"First they repatriated their families, then retrenched a thousand workers and terminated agreements with local contractors and now we hear that the multinational has also put up their Bombay-office for sale," Kaul said.

Taking a legal view, Kaul said the PTN should be treated as a termination notice as DPC has done so while the construction of its phase-II still stands incomplete.

"The part of the equity disbursal is also pending by the lenders," he added.

Kaul said the state government and MSEB should pay-up the damages only up to April 9, 2001 the day the US energy major invoked the "political force majeure."

"They had stopped work from that day onwards, so the damages should be paid accordingly," Kaul added.

YOU MAY ALSO WANT TO SEE:
Maha govt, MSEB may have to cough up Rs 170 bn upfront damage
Enron's notice 'improper': Deshmukh
DPC took a hurried decision, clock starts ticking now: FIs
Centre to lose upto Rs 28.50 billion if Dabhol is terminated
Godbole refuses to comment on DPC's notice to MSEB
DPC issues pre-termination notice to MSEB
Pawar, Deshmukh discuss DPC's 'possible' pre-termination notice
Enron moves executives' families out of India
Enron decision on Monday
Maharashtra CM hopeful of renegotiation with Enron
History of Enron's Dabhol power plant: Reuters

Tell us what you think of this report