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FIs 'completely ignored' us in DPC's proposed sale: MSEB

Maharashtra State Electricity Board on Friday said that financial institutions, led by IDBI, had 'completely ignored' the board while negotiating a buy-out of Dabhol Power Company's foreign sponsors' equity by city-based utilities Tata Power Company and BSES Ltd.

"There are media reports about a proposal put forward by FIs in Singapore that MSEB, which holds 15 per cent stake in DPC, should offtake power from the 740 mw phase one and also part with its 'cream' distribution area to the new buyer, but nothing has reached us so far," a senior MSEB official said in Bombay.

He said the FIs did "not call us to the Singapore meet and had no right to make such an offer without consulting (us) and taking MSEB into confidence."

"Finally, if things get sorted out and DPC is taken over by another company, it is MSEB which is going to be the largest consumer of the plant, and strangely despite having a 15 per cent stake in the company, it is not even involved in DPC's sale process," the official said.

MSEB has also opposed authorisation of DPC managing director K Wade Cline to issue the final termination notice and instead asked the company's board to take a 'fair' decision at the November 30 London meet.

In a communication to DPC, MSEB has opined that such a major decision should be taken unanimously by the DPC board and not by its managing director, the official said.

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