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DPC serves arbitration notice on Maharashtra government

US energy giant Enron promoted Dabhol Power Company has issued a notice of arbitration to the Government of Maharashtra for failing to honour its obligations under the guarantee in the power purchase agreement between DPC and Maharashtra State Electricity Board.

The MSEB has failed to pay Rs 2.25 billion, the amount comprising of monthly power bill of December (Rs 1.10 billion) and January (Rs 1.11 billion) plus interest occurred on it. The GoM has failed to respond the DPC on recalling their guarantee for the payments.

"The GoM has repeatedly failed to honour its guarantee, including payment towards the December 2000 and January 2001 bills, and in respect of interest on late payments, forcing DPC to serve arbitration notice on GoM," a DPC spokesperson said.

UNI

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