The government on Friday said 'all cases' relating to the beleaguered Dabhol power project have been settled and electricity generation from the 2,184 MW gas-based plant will begin by July next year.

"We have settled all cases relating to Dabhol power project out of court," Law Minister H R Bhardwaj told reporters on the sidelines of a seminar in Delhi.

The Centre's assertion came days before the July 18 date set at the London arbitration panel to hear the cases filed by US promoters to Dabhol Power Company -- GE and Bechtel.

The two companies had filed arbitration claims worth over $6 billion (over Rs 25,000 crore) at the London panel for breach of investment protection pacts. But, following agreements with Maharashtra as well the Union government both the US companies have decided to drop the cases.

Bhardwaj said now that all issues have been settled, power generation at the plant would begin within a year.

Earlier this week, the Maharashtra Power Development Company Ltd -- which controlled 15 per cent stake in DPC -- signed a deal with Bechtel involving a payment of $160 million to settle its dues.

Bechtel also agreed to withdraw all litigations, clearing the last major hurdle in restarting the project that has been lying shut for over four years now.

IDBI-led Indian lenders have also reached an agreement with GE for $145 million. The dues of overseas lenders have been settled for $230 million, while that of the US-government-promoted Overseas Private Investment Corporation for $220 million.