Looking anew at Enron PPA
New Delhi: The Maharashtra government has initiated steps to renegotiate the power purchase agreement with the Dabhol Power Company .

It will set up a high-level committee with central representation, which will discuss the cost of the project, and the issue of passing on surplus power to other states. This move by the Maharashtra government may have come a little late in the day, since Enron, the major shareholder in DPC, ha already slapped two arbitration notices on the Maharashtra government, which could cause some legal problems.

Enron is also meeting with its lenders in London, who could even want Enron to pull out of the project.

The Maharashtra government, on its part, will argue for a re-negotiation based on the findings of the Godbole committee, which has gone into the issue of the costing, tariffs and other aspects of the PPA of the Dabhol power project.
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