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DPC re-invokes Centre's guarantee for Rs 3.78-billion dues

US energy major Enron-promoted Dabhol Power Company has invoked the Centre's counter-guarantee amounting to Rs 3.78 billion for a second time towards non-payment of dues by its partner MSEB for April, May and June.

"DPC had drawn upon the Maharashtra government's counter-guarantee on August 29 to claim outstanding bills as the state government failed to honour its contractual obligations and was forced to draw upon the Centre's counter-guarantee towards these dues on September 7," the DPC said in a statement on Tuesday.

The bills include fixed charges up to Rs 950 million each, interest of unpaid bills and fuel management charges among others.

This is the second time that the US energy major has invoked the Centre's counter guarantee. Earlier, on February 6, it did so after the MSEB and the state government refused to clear its November and December 2000 bills for Rs 790 million and Rs 1.52 billion, respectively.

DPC said that MSEB's refusal to meet contractual obligations, attempt to rescind the PPA and not despatch power from 2,184 MW project's phase-I made it imperative for the multinational to again invoke the state and Central counter guarantees to protect its rights and those of its sponsors, lenders and fuel suppliers.

Incidentally, the US energy major has already entered into a legal battle of arbitration with the Central government over the latter's refusal to honour the first invoked counter-guarantee.

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