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August 9, 2001
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Money > Business Headlines > Report August 9, 2001 |
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MERC directive puts MSEB in a tight spotBS Regional Bureau A recent ruling by the Maharashtra Electricity Regulatory Commission asking the Maharashtra State Electricity Board to release all agreements and associated documents related to the Dabhol Power Company has put the MSEB in a tight spot. The MSEB received a letter from DPC on Tuesday informing it that releasing documents related to the power purchase agreement would amount to a breach of the confidentiality clause signed between the two organisations. MSEB chairman Vinay Bansal stated: "As per the confidentiality clause we signed with the DPC, we are bound not to release these documents for atleast three-years after the termination notice has been issued." The MSEB board was examining all options before it, he added. The MERC had issued a directive asking the MSEB to provide all the documents sought by Prayas, a non government organisation, especially the fuel supply agreements and financial closure agreements. "The MSEB has to be indemnified from any liability towards DPC if it releases the documents," Bansal noted. Interestingly, during the MERC proceedings, the regulator sought to know whether its ruling automatically indemnified the MSEB from any liability towards DPC for having released the documents. The MERC ruling, however, does not clearly articulate the same. A senior MSEB official said: "In the arbitration issue, the MSEB reposed faith in the MERC to adjudicate between the DPC and itself. Thus, if it refuses to follow the MERC directive and release the documents now, it would be contradicting its own stand." The issue of MERC's jurisdiction to adjudicate on the arbitration issue is set to be heard by the Bombay high court. If the decision is found in favour of the MERC, then its ruling on the release of documents would also be binding on the MSEB. "However, taking a decision in the meanwhile would put MSEB in a peculiar situation because if the high court rules in favour of the DPC, then MSEB would find itself in a spot. The logical thing for MSEB would be to play for time until the high court rules on MERC's role in the DPC-MSEB tangle," the official said. Powered by YOU MAY ALSO WANT TO READ:
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