DPC officials comprising its president and chief executive officer Neil McGregor, senior vice president Mukesh Tyagi, senior vice president Sanjeev Khandekar met Mr Thackeray on Sunday. Although the company assured Mr Thackeray to find a way out from the present crisis, insisted that the signatories of the power purchase agreement (PPA) of the Dabhol project should meet their contractual obligations.

DPC spokesperson Jimmy Mogal confirmed two sittings with Mr Thackeray. "It was a routine meeting, as we do it with the Government of India, Government of Maharashtra and various other personnel to apprise them of the present situation on the Dabhol project."

Sources said that the Dabhol officials, who are believed to have decided to reach out to plead its case, have sought Mr Thackeray's intervention so that the project is saved and its revenues are not hampered.

The Dabhol officials believed to have made a detailed presentation on the status of the project, the reasons for the sudden hike in the per unit tariff in view of increase in crude/naphtha prices, slide in rupee value. The company is believed to have told the Sena chief, that the present problem is also largely due to the prevalent inefficiencies and certain inherent lacunae in the functioning of the loss-making Maharashtra State Electricity Board (MSEB).

The DPC officials reiterated that had the MSEB purchased the power at the 90 per cent availability, the financial burden would have been less. They projected that the per unit tariff, would be reduced after the full commissioning of Dabhol phase-II (1,444 MW) in December 2001.