Mantralaya sources told The Financial Express that the government and MSEB would make a strong attempt to put the DPC in the wrong box on the controversial issue of MSEB's decision to slap a penalty (rebate) of Rs 400 crore for "misdeclaration." Simultaneously, the government would appeal to the Centre to not resort to the withdrawal of the amount equivalent to the DPC's December bill from the state's account with the Reserve Bank of India until the DPC makes the payment towards penalty or adjust it towards the power purchase bills of not only December but also of January (Rs 127 crore) and February (Rs 114 crore).

This strategy has been planned in view of Friday's meeting convened by Union Finance secretary Ajit Kumar with the state chief secretary V Ranganathan, principal secretary (finance) Anupam Dasgupta, principal secretary (energy) VM Lal and MSEB chairman Vinay Bansal on this issue. As per the provisions of the power purchase agreement (PPA), the Centre would have to make the payment within 30 days.

The government and MSEB are of the unanimous view that the "ball has already been turned into the DPC's court," and it is the DPC which has to make the payment first. These sources pointed out that the MSEB has already written to the DPC to adjust these bills as well as an interest of Rs 40 crore from the penalty amount of Rs 400 crore.

However, the DPC, which has disputed the MSEB's decision of slapping a penalty (rebate) of Rs 400 crore, has already decided to take up the issue at the disputes resolution panel. MSEB has alleged that the DPC has not only misdeclared the time schedule for making available the power demanded and conveyed to it by the MSEB, but has also failed to follow the "ramp up" period and thus violated the PPA provisions.