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DPC issues another PTN to MSEB

US energy major Enron-promoted Dabhol Power Company on Monday confirmed that it has issued preliminary termination notices for the second time to Maharashtra State Electricity Board in order to protect the interest of DPC's sponsors and other stakeholders.

In a statement, the company said that the PTNs covered MSEB's non-payment of dues and also issues related to abrogation of the power purchase agreement.

''We have reached a point where there are no alternatives but to proceed with the termination of the PPA and recovery of damages as allowed under the agreement,'' a DPC spokesperson in Bombay said.

''The termination approach could ultimately yield a contentious and high profile process to recover legal dues,'' he said.

However, DPC would still prefer to take other alternative approach of a negotiated purchase of the foreign investors stake in the project including lenders at cost but it needs to be on realistic terms.

''Our preferred approach still would be for a prompt and amicable resolution of the dispute based on a complete recovery of foreign sponsor costs, including retained earnings and development costs,'' the spokesperson added.

UNI

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