The three-member committee would visit Mumbai on Monday to take stock of the situation and hold separate meetings with the officials of the state government and the Maharashtra State Electricity Board (MSEB).

Top MSEB sources told The Financial Express that it has received the necessary information about the formation of a special committee and its visit on Monday. "We will explain the circumstances underwhich MSEB had restricted its power purchase at around 180 mw and the various reasons for the non-payment of power purchase bills to the DPC," they added.

Board sources said that it would also bring it to the notice of the visiting central committee about the MSEB's deterioating financial position and its inability to bear burden. The board is also likely to make its stand clear on the various possibilities for the reduction in the per unit cost by the DPC.

The committee would also hold separate meeting with state government officials to know whether the state has really become insolvent and whether it was not in a position to pay the necessarry bills to the DPC even after the invocation of state government guarantee on January 25.

DPC president and chief executive officer Neil McGregor confirmed that it has sent an advance intimation to the Centre on Friday about the invocation of sovereign guarantee. He said that the DPC has made an appeal to the Centre to use its good offices and "try and avoid call on the sovereign guarantee."

Mr McGregor said that the company has pointed out that the MSEB, which holds 30 per cent equity in the Dabhol phase-I, has failed to meet its financial obligations. "We are aware about the present situation in the wake of natural calamity which struck the Gujarat state and thus, have requested the centre to make necessarry efforts to avoid the invocation of sovereign guarantee," he added.

He reiterated that the DPC has not served a notice to the centre on the invocation of counter guarantee. As per the provisions of the power purchase agreement, the centre would have to make the necessary payment to the company within 30 days since the date of issue of notice in connection with the invocation of counter guarrantee.

Simultaneously, DPC spokesperson Jimmy Mogal said that the company has not yet invoked the counter guarantee. "DPC is disappointed that the Maharashtra government did not fulfill its contractual agreement to pay MSEB's liability within the required seven-day period. The state government's failure to pay the required amount timely has been conveyed to the Centre. We will be consulting with our shareholders and lenders and will evaluate all options."