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MSEB stops buying DPC power

Maharashtra State Electricity Board has stopped taking power from Dabhol Power Company from Tuesday noon as the former "considered the power purchase agreement void."

At the hearing of MSEB's petition at the Maharashtra Electricity Regulatory Commission in Bombay, state advocate general Goolam Vahanvati, appearing on behalf of MSEB, referred to DPC's letter of May 25 to MSEB and said the state power utility has decided 'to stop buying power from the Enron-promoted company as it considered the PPA void."

Enron India Managing Director, K Wade Cline, in the May 25 letter had said, "MSEB has to make up its mind that either it rescinds the PPA or if it continues to buy power, the PPA would be considered still valid."

MSEB has also sought an ad-interim relief for restraining DPC from activating the escrow account and to stop further steps leading to international arbitration, Vahanvati added.

DPC, through their senior counsel Atul Setalvad, expressed doubts over MERC's jurisidiction to decide or solve the ongoing disputes with MSEB.

"We are appearing under protest and without prejudice to our right to contest the jurisdiction of MERC," DPC counsel submitted before the commission.

DPC has demanded two week's time to position themselves under the law and consult their shareholders and lenders, he added.

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