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No hurry to reply to Enron PTNs, says MSEB chief

The Maharashtra State Electricity Board is in 'no great urgency' to respond to the two more preliminary notices slapped on the board by its estranged partner, Enron's Dabhol Power Company.

"We have rescinded the power purchase agreement on which these notices are based. Hence, MSEB has no great urgency to reply," MSEB chairman Vinay Bansal said.

As per the procedure drawn by the PPA, DPC would continue to issue such notices in future as well till the expiry of the first (May 19) pre-termination notice, he said.

Enron slapped two more preliminary termination notices on September 10 on MSEB, for non-payment of dues for the months of April (Rs 1.36 billion), May (Rs 1.40 billion ) and June (Rs 1.02 billion) and towards the board's decision to abrogate the PPA on May 23.

The US energy major had first slapped a PTN on MSEB on May 19 last in view of the board's 'unwillingness' to honour its off-take commitments for the entire 2,184 mw power station.

According to an MSEB official, the board has made it clear to the Enron that since it had rescinded the PPA, the question of payment does not arise at all.

"In fact, it is DPC which has to pay us a Rs 12-billion rebate for misdeclaration of capacity. We have communicated to them not to despatch any more bills as MSEB will not entertain any such demands," the official said.

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