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DPC invokes 'political force majeure' notice to MSEB

In an effort to protect its interests, energy major Enron promoted Dabhol Power Company on Monday invoked the 'political force majeure' notice to the Maharashtra State Electricity Board.

Such a step was necessary under the power purchase agreement and related security documents to notify the board of 'certain events and to enforce our rights', DPC said in a statement.

The DPC spokesperson said that the 'forced majeure' clause was resorted to as, as per the PPA 'certain events occurred that are beyond the reasonable control of the affected party - the DPC'.

The energy major had dispatched the notice to MSEB, as an affected party, which had been subjected to 'concerted, deliberate and politically motivated actions of Maharashtra government, the government of India and the board, which will have a material and adverse effect on DPC's ability to perform obligations under PPA'.

"Given the cumulative effect of these political actions, DPC determined that the political force majeure declaration is an appropriate mechanism for providing that notice, and that is an appropriate and necessary step in protecting DPC and its stakeholders' rights," the statement added.

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