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HC admits writ petition against DPC, issues notices

The Nagpur bench of Bombay High Court has admitted a petition challenging alleged irregularities in Dabhol Power Corporation (DPC) and issued notices to nine respondents including the Prime Minister's Office.

A division bench comprising justice J N Patel and Justice P S Bramhe, admitting a petition by city (Nagpur) lawyer G C Singh on Thursday, also issued notice to DPC to state whether Maharashtra State Electricity Board (MSEB) can be asked to pay only 89 paise per unit energy produced by DPC and to purchase power according to the requirement.

The bench issued notices to central and state governments asking them to explain why it should not grant interim relief sought by the petitioner for paying not more than 89 paise.

The petioner has further sought compensation from the US power major to the tune of Rs 300 billion to the Union Government, Maharashtra Government and the MSEB.

According to the petitioner, compensation should be paid by the DPC for deceiving the people of Maharashtra and the country. He also prayed that the court should declare inoperative, both the guarantees by the state and Centre respectively in June 1994 and December 1993.

On the question of interim relief, the court will hear the respondents after six weeks.

The court would hear whether MSEB can be directed to pay 89 paise per unit of power consumption from DPC as per its requirement without capacity charges and plant operation calculated at 67 per cent plant load factor (PLF) during the pendency of writ petition.

Appearing in person, the petitioner prayed that the bench should direct DPC to give details of nature of 'education of the Indian officials' which cost Rs 640 million in relatively short span.

The petitioner sought directions to the respondents for producing all records of the project, including the Power Purchase Agreement (PPA) executed on December 9, 1998. He said, the PPA was in favour of DPC and in abject surrender.

The actual cost of 2015 MW Enron project worked out to Rs 41.27 billion by any international standard and MSEB had already paid a whopping Rs 40.37 billion. It can now safely take over DPC by paying remaining Rs 900 million, he contended.

The other respondents include union secretaries of Power, Finance, Law, Chairman of Central Electricity Authority, Chairman of Foreign Investment Board, Chief Secretary of State, secretaries of Energy and Finance and Chairman of MSEB.

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