The Times of India News Service

NAGPUR: The Nagpur bench of the Bombay high court has issued a show-cause notice to the Enron-promoted Dabhol Power Corporation (DPC) asking why it could not be asked to charge only 89 paise per unit for the power it sold to the Maharashtra State Electricity Board (MSEB).

The legal move could give a new twist to the raging controversy over the tariff structure in which the DPC and the MSEB are embroiled.

Significantly, the bench comprising Justices J.N. Patel and P.S. Brahme on Thursday also issued notices to the Prime Minister's Office (PMO), Union ministries of finance, power, law and judiciary, the Central Electricity Authority (CEA), foreign investment promotion board, the chief secretary of Maharashtra, the state finance department and the MSEB. They have been directed to file replies within six weeks.

The notices were issued in a public interest litigation filed by G.C. Singh, former principal of a local college who is presently practising law. Claiming that his plea was based on highly sensitive internal communication documents between the DPC and the MSEB, the petitioner has alleged that the power purchase agreement signed between the two was a great betrayal and a fraud committed by Enron officials, politicians and the bureaucrats by which the state electricity board was forced to pay exorbitant tariff. Charging the DPC with wilfully misleading authorities, the petitioner has alleged that the private company had not obtained necessary clearances from the CEA.

The court, issuing notices to the respondents, asked why the interim relief sought by the petitioner of fixing the power price at not more than 89 paise be granted. The court has also prayed for restraining the DPC from charging capacity charge to the MSEB and allowing the state board to purchase power as per its requirement without being penalised for buying less power from the DPC. The plant operation costs should be calculated at 67 per cent plant load factor during the pending period, says the petition.

Urging the court to intervene in the ``blatant loot'' of the country's wealth by a multinational, the petitioner pointed out that according to clause 20.1 of the PPA, it would be governed by Indian law and hence the high court had the powers to quash the one-sided agreement. The petitioner further claimed that the MSEB had already paid Rs 4,037 crore to the DPC till September 2000 and by paying another Rs 90 crore, the Maharashtra government could legally take over the DPC with all its installations and machinery. Because, as per international standards the cost of a 2015 MW power plant came to Rs 4,127 crore and the government could take over the plant by paying the remainder sum over what it has paid till now.

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