The government on Thursday claimed it was so far under no liability to honour claims worth over a billion dollars raised by overseas lenders and minority shareholders of the controversial Dabhol power plant.

Responding to a question in Lok Sabha, Minister of State for Power Jaywanti Mehta said, "As per information made available by the ministry of finance, no liability has so far arisen which requires the government, either as a result of mutual settlement or an arbitration award, to honour such claims."

Mehta said offshore lenders had initiated claims worth Rs 722 crore (Rs 7.22 billion) from the Centre whereas minority shareholders -- Bechtel Enterprises and GE Finances -- had filed an arbitration claim of $1.26 billion against the government.

The naphtha-fired 740 MW power station promoted by bankrupt US energy giant Enron had been idle for past two-and-a-half years following the plant owners' dispute with Maharashtra State Electricity Board over payments.

Enron owns 65 per cent stake in Phase I of the project with state board holding 15 per cent; the remainder 20 per cent is shared equally between GE and Bechtel.

Following the dispute and the bankruptcy proceedings, the power plant stopped generating energy and second phase expansion was put on hold.

Overseas investors won a victory when an international panel ruled that Overseas Investment Promotion Council should pay over $50 million.