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MERC asks MSEB to justify clearing DPC project

Fresh trouble seems to be brewing for Maharashtra State Electricity Board over the present dispute with Enron's Dabhol Power Company, as Maharashtra Electricity Regulatory Commission, on Thursday, questioned the very basis on which the board had cleared the 2,184 mw project.

"As per your submission that MSEB did not have the actual documents of the financial closure of the project's Phase II till February 27, then on what basis did the board clear the project?" MERC members asked MSEB technical director Prem Paunikar while hearing the petition filed by Pune-based NGO Prayas.

In its plea, Prayas has sought the status and copies of various power purchase agreements and related contracts or commitments signed by MSEB with independent power producers including DPC, in the state.

In its argument, MSEB said that it was contractually bound with DPC as the energy major had claimed confidentiality on several documents.

The documents in question are both Phase I & II of the $3 billion project, which include details of the preliminary termination notice, termination notice, the 20-year gas supply agreement and liquid fuel contract with Oman LNG, operation and maintenance records, construction contracts and fuel management.

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