Maharashtra Chief Minister Sushilkumar Shinde said his government was in talks with the Centre and the Indian lenders to the Dabhol Power Coproration about transferring the project to the Maharashtra State Electricity Board.

Replying to the Opposition charge of fiscal imprudence in the state assembly, Shinde said, "We have a peak hour power shortage of around 2,500 MW. Power generation is crucial for the state's development. I am discussing with the Centre and IDBI how MSEB could take over the 2,183 MW DPC project. The previous Shiv Sena-BJP government has done little to improve power generation."

Shinde said Parli and Paras power projects of 250 MW each began generation only after he took over as the chief minister.

BJP's Gopinath Munde said it was during his term as Maharashtra energy minister that the Paras and Parli projects were accorded clearance from the Central Electricity Authority.

In reply to an allegation made by the leader of the Opposition in the legislative assembly Narayan Rane that the state's indifferent policies had resulted in decline in investments, Shinde listed out investments in the state.

Reliance Infocomm has invested Rs 8,000 crore (Rs 80 billion) in Maharashtra, he said.

LG is investing Rs 500 crore (Rs 5 billion), Infosys Rs 250 crore (Rs 2.50 billion), Deccan Chemicals Rs 85 crore (Rs 850 million), B4U Rs 500 crore (Rs 5 billion) and Hathway Cables Rs 342 crore (Rs 3.42 billion), he said.

"Rane said the state has a huge debt burden of Rs 93,000 crore (Rs 930 billion). I would like to inform the House that as of today, we have repaid a total debt of Rs 60,950 crore (Rs 609.50 billion). This will result in annual savings of Rs 300 crore (Rs 3 billion) in interest payments," Shinde said.

"We had sought permission in vain from the previous National Democratic Government at the Centre for swapping high-cost debts raised by the Shiv Sena-BJP government. The previous government in the state borrowed at exorbitant rates as high as 18 per cent," Shinde said.

He said the fiscal situation of the state was improving and this was evident from the fact that since March 2003, the government did not take overdraft.

"In April and May, we did not even once dip into the ways and means advance," Shinde said.