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Maharashtra to move London court on DPC issue

Maharashtra Government would move a London court within a week against an injunction obtained by US energy major Enron's Dabhol Power Company, restraining the state from filing a suit in India challenging international arbitration proceedings to be held in UK.

"The injunction obtained by DPC is an ex parte one and the state will move the London court within a week against it," Chief Minister Vilasrao Deshmukh told reporters after a cabinet meeting.

DPC had dealt a legal blow to the state government by obtaining the injunction from the Commercial Court of London.

To a query regarding appointment of a retired supreme court judge to head the judicial probe into power purchase agreement with Enron, Deshmukh said the name of the judge would be announced in a week.

He admitted there was energy deficit in Maharashtra but firmly ruled out purchase of 'costly' power from the DPC.

"The state can not afford to buy electricity from DPC and provide it to farmers and consumers across the state at subsidised rates," the chief minister emphasised.

Asked how the state would tide over the energy crisis, Deshmukh said, "we will procure electricity from National Thermal Power Corporation at a cheaper rate."

He, however, clarified that the gap between demand and supply was always greater during peak period and the state had resorted to load shedding in the past as well.

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