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Maharashtra to spend Rs 30 million on Enron arbitration in London

The Maharashtra government has presented a supplementary demand to the state legislature for Rs 30 million towards expenses to be incurred on the arbitration proceedings to be held in London following the notices given by the Enron promoted Dabhol Power Company.

The DPC has issued three notices of arbitration to the state government under various agreements for supply of power to Maharashtra State Electricity Board and default in payment.

The minister of state for finance Rajendra Darda, while speaking on the supplementary demands of his department in the legislative council on Wednesday, said out of Rs 30 million, Rs 25 million would be spent towards arbitration proceedings and Rs 5 million were to be utilised for bearing expenses of the Godbole Committee appointed by the government to review the controversial project.

The minister said Rs 252,000 would be paid daily to the chairman of the tribunal towards his fees and daily payment of Rs 216,000 each to the two solicitors in the case.

The state government had sent its reply to all the notices, Darda said, adding that the tribunal had asked it (Maharashtra government) to deposit an amount of Rs 1.25 million.

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