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MSEB files petition with MERC

The payment disputes between MSEB and US energy major Enron-promoted Dabhol Power Company has now snowballed into a larger controversy, with the former filing a petition on Friday with Maharashtra Electricity Regulatory Commission seeking 'rescinding' of the power purchase agreement and nearly Rs 7 billion as damages.

"This is a logical step after issuing the legal notice to DPC on Thursday. MSEB has sought justice from MERC as it has exclusive legislative jurisdiction to adjudicate disputes between the two power utilities in the state," a senior state government official said.

The 60 page petition, with nearly thousand pages of annexures, prays that MERC should adjudicate MSEB's disputes with DPC including the Rs 4.01 billion rebate payable by the US multinational. The petition also wants MERC to look into alleged misrepresentation of facts by DPC about the ramp-up procedure from a cold start to full capacity, he said.

"We have also referred numerous notices, the political force majeure, the preliminary termination notice, DPC's demand for the escrow cover and its subsequent defaults in ramping up generation as per demand," an MSEB official said.

The loss-making board has also sought the regulator's direction over whether it should take up international arbitration,he said.

"With a suitable order MERC will now tell us how to deal with the arbitration, escrow cover, damages etc," the state government official said.

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