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HC to hear 4 petitions against DPC on Feb 6

Four petitions have been filed in Bombay high court challenging the legality of the 2184 MW project of Enron's Dabhol Power Company, the power purchase agreement between DPC and Maharashtra State Electricity Board, tariff charged by DPC, and guarantees provided by the government to the US multinational.

The petitions were mentioned on January 22 by advocate Rajiv Patil before justices Ajit Shah and Vijaya Tahilramani who decided to hear them on February 6.

One petition has been filed by social activists P B Sawant and Pradume Kaul who challenged the PPA on the ground that it did not have a provision of fixation of power tariff. This, they argued, violated government notification issued on August 22, 1994.

The petitioners contended that in gross violation of the notice, the PPA also did not mention the project cost.

In the notification on power tariff, the capacity of the plant was mentioned as 6000 kilowatts per year but in fact the base load capacity of DPC's plant was 8672 kilowatts per year.

Thus Enron was allowed to produce more electricity and thereby make more profit.

The second petition, also filed by Sawant and Kaul, challenges the tariff structure on the basis of which DPC sells power to MSEB.

The petitioners argued that the tariff formula drawn up without the sanction of Maharashtra Electricity Regulatory Commission violated section 29 of Electricity Regulation Commission Act.

The third petition has been filed by Janata Dal leader Haribhau Mahale who challenged the guarantee and counter guarantee provided to DPC by the Maharashtra and the Union governments.

Mahale has argued that the state government mortgaged Mantralaya, state Assembly and Bombay high court buildings in providing guarantee, while the Centre has provided similar counter guarantees by mortgaging buildings housing the Parliament House and Supreme Court.

The petitioner contended that giving such type of guarantees was wrong and should be scrapped.

Another petition filed by Janata Dal leader Pratap Hogade challenged the legality of the 2184 MW project.

The petitioner pointed out that the project was set up at a cost of Rs 90.53 billion and that the central authorities had sanctioned it without waiting for the stipulated 60 day period and also without taking into account the suggestions or objections invited by DPC.

Moreover, DPC had not declared the cost of the sanctioned project and therefore the power plant was illegally set up.

The respondents to the petitions are DPC, MSEB, Maharashtra government and the Centre.

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