DPC slaps yet another arbitration notice on Maharashtra govt

Our Corporate Bureau

Mumbai, Oct 30: The Dabhol Power Company, in a bid to further tighten its noose, has served one more arbitration notice on the Maharashtra government for the non-payment of bills of power purchase bills from April to July 2001 period worth Rs 652 crore. The DPC, which has already succeeded in restraining the state government from filing any suit against the international arbitration proceedings from the London court, has also invoked the state’s guarantee for Rs 104.97 crore August bill. The state government sources told The Financial Express that it is a routine course of action taken by the DPC despite the state government as well as Maharashtra State Electricity Board have already informed the DPC that it should not keep on sending power purchase bills as MSEB has stopped power pruchase since May 29 and has rescinded its power purchase agreement with DPC. It was ironical that the DPC has not yet paid a rebate of around Rs 1,200 crore slapped on it by
the MSEB for the default and material misrepresentation, sources added.