Search the Internet          Tips  Sites: Finance, Investment

MSEB pays Rs 1.34-bn March bill under 'protest' to DPC

Despite the threat of a possible termination notice hanging on its head, Maharashtra State Electricity Board on Thursday made a 'protest payment' of the Rs 1.34 billion disputed amount, towards March bill of Rs 1.47 billion to Dabhol Power Company.

"We were ready with the payment yesterday itself, but DPC officials could not collect the cheque due to the statewide bandh," a senior MSEB official said in Bombay on Thursday.

"We have disputed payment of Rs 126 million and it would be now taken up at the disputes resolution forum, of which Enron India managing director K Wade Cline and Krishna Rao are members," MSEB sources said.

Last week, DPC had dashed off a communication to the government and MSEB that it would not accept 'protest payments' anymore.

Cline had said the energy major shall treat such payments as an election to pay the sums, which MSEB in fact owed DPC in full and that the company would also not recognise the 'purported protest or reservation'.

MSEB had paid a Rs 1.13-billion February bill in protest last month.

On April 23, both domestic and international lenders of DPC had met in London and held exhaustive discussions about the multinational's move to issue a termination notice to MSEB and the state government.

Sources said it was the leading Indian institution IDBI, which persuaded its international counterparts to refrain from this 'hurried step' and that there was no need to issue such a notice at this stage.

The termination would have resulted in a serious blow to the Indian FIs as their exposure risks in the project was not covered under the Centre's and state's guarantee, as was the case with the International lenders.

YOU MAY ALSO WANT TO SEE:
Enron moves towards ending Dabhol deal: Reuters
Enron's decision 'unfortunate': Maharashtra CM
Foreign firms exit as India fights Enron: Reuters
History of Enron's Dabhol power plant: Reuters
'DPC re-negotiation panel in 2 days'
Enron says it has no plans to divest stake in DPC
'I think there will not be many takers for Enron's stake in DPC'
Enron may sell majority stake in India: Reuters
DPC slaps 2 notices on Maharashtra, MSEB
Godbole report hits out at DPC
DPC serves arbitration notice on Maharashtra govt
Godbole report tabled; moots renegotiation with Enron
Set up probe panel to look into Enron PPA: Godbole panel
DPC invokes counter-guarantee again
Sucheta Dalal on the Enron problem reaching a flash point
The Money Interview/Enron Action group

Tell us what you think of this report