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June 6, 2001
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MSEB refuses DPC power at 90 per cent PLF

Renni Abraham

The Maharashtra government will not buy power from the first phase of the Dabhol Power Company's project at a 90 per cent plant load factor, a senior state government official said in Bombay on Tuesday.

The statement represents a hardening of Maharashtra's position on talks with DPC and virtually kills the latter's proposal to split tariffs for the Centre and Maharashtra.

The Maharashtra State Electricity Board is now required to buy 90 per cent of the power generated by the first phase (740 mw) of the project. But during negotiations with the Godbole Committee, it has been demanding that the requirement be cut to 35 per cent.

At the last Godbole Committee meeting, DPC had put forward a plan to split tariffs for the Centre and Maharashtra, with the Centre paying Rs 3.30 per unit of power and MSEB paying Rs 3.50. The Centre, DPC suggested, could buy two-thirds of the power it generated, once the second phase (1,444 mw, taking the total capacity to 2,184 mw) was completed.

Maharashtra's latest position undermines DPC's proposal since the Enron-promoted company's tariff hinges on MSEB absorbing 90 per cent of the power it generates in the first phase.

A senior state government official said: "The Centre has been talking a lot about playing the role of a facilitator. What we need is a buyer for the second phase."

Despite recent central government pronouncements, state government officials privately argue that the Centre is not playing an active role in resolving the problems that have plagued the DPC project. At the very first Godbole Committee meeting he attended, the Centre's nominee, AV Gokak, adopted a non-committal stand.

The Maharashtra government official added: "Gokak said he was merely attending the meeting in the capacity of a messenger and would communicate to the Centre any solution worked out by the renegotiation committee. The Union power ministry has stated that a solution worked out by the renegotiation committee would be acceptable to it. Unless the Centre takes an active part and assures the offtake of the second phase, no solution can be worked out."

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