Our Political Bureau

Mumbai, June 6: THE Maharashtra chief minister Vilasrao Deshmukh on Wednesday said that his government’s stand that the state cannot afford to buy “costly” Dabhol power has ultimately been vindicated by Prime Minister Atal Behari Vajpayee.

“We stick to our position that the Centre should step in to bail out the state as we cannot bear the additional burden. The purchase of additional 722 MW from block b of Dabhol phase-II is simply out of question as the state has not drawn more than 300 MW from the Dabhol phase-I of 740 MW,” Mr Deshmukh said.

Mr Deshmukh was reacting to the prime minister’s statement that if Maharashtra cannot purchase such costly power who else would buy it.

Mr Deshmukh told reporters after the weekly Cabinet meeting that something would emerge from the ongoing renegotiations between the Maharashtra State Electricity Board (MSEB) and the Dabhol Power Company. “However, DPC will have to sacrifice something and the MSEB will also have to do some balancing act for the resolution of the Dabhol issue,” he added.

Mr Deshmukh admitted that the he has been consistent on his demand that the Centre should take over Dabhol phase-II which is the only way in which the complex problem of this project can be resolved. The chief minister said that his government will seek legal opinion on how to tackle the arbitration proceedings initiated against it by the DPC. He added that at present the MSEB has got stay from the Maharashtra Electricity Regulatory Commission on implementation of arbitration process by the DPC. “Let the DPC take action on this front against the state government, we will take the necessary steps after seeking legal advise,” he added.
On making the Dabhol papers open for public, Mr Deshmukh said that his government will also seek legal advise in this regard and take necessary action thereafter. At present, DPC has declined to release certain documents on the grounds of “confidentiality.”

Mr Deshmukh ruled out any possibility of adverse impact on receiving foreign direct investment in the state in view of the ongoing Dabhol imbroglio. “The question does not arise, as according to the power purchase agreement between DPC and MSEB, the latter was entitled to purchase all power. In case of FDI, the state is not entitled to buy the products of the FDI investor,” he added.