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May 3, 2001
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Money > Business Headlines > Report May 3, 2001 |
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MSEB will have to pay Rs 5 bn per month to DPC after phase-IIThe Maharashtra State Electricity Board will have to pay Rs 5 billion per month as fixed charges to Enron Corporation's Dabhol Power Company from January 2002, after the 1,444-MW second phase of the power project is completed in October this year. Disclosing this, MSEB officials said on Thursday that it would not be financially viable for the board to pay fixed charges for the second phase and this would be again conveyed to the DPC during renegotiation of the power purchase agreement. "As per the PPA, we will have to pay Rs 5 billion every month to DPC after completion of the second phase which will generate 1,444 MW, even if we do not consume power," MSEB officials explained. They said, "Though we are regularly paying the fixed charges of Rs 950 million on monthly basis for the first phase of 740-MW power, it is not financially viable for MSEB to pay the charges of Rs 5 billion for the second phase." "We have been raising this issue with the DPC since last couple of months highlighting that this is not viable and even Maharashtra Chief Minister Vilasrao Deshmukh had raised the issue in New Delhi at a meeting recently," they recalled. The board will continue to raise this issue during the re-negotiation process with DPC. However, DPC officials are keeping mum over the issue and have adopted a 'wait and watch' role, the officials said. Under the second phase of the project, 722 MW power generating capacity will be achieved by June and remaining 722 MW by October, they added. UNI YOU MAY ALSO WANT TO SEE:
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