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Our Bureau

Mumbai , Jan. 14

THE Maharashtra Cabinet, which met here today, deferred a decision onwhat price the State electricity board should pay to buy power from the troubled Dabhol power plant, if and when it became operational again.

Overseas Private Investment Corporation representatives will meet State Government and IDBI official here tomorrow on the issue.

"The Cabinet is expected to discuss Dabhol and the price at which power will be purchased by MSEB, among other things," Mr Jayant Kawale, Power Secretary said, when contacted. The IDBI-led consortium of lenders to the project, which is responsible for upkeep of the plant that has been lying idle since May 2001, has been negotiating with the State Government for restarting power purchases from the plant.

Incidentally, members of the OPIC, the US Government agency that has stepped into Enron's shoes as stakeholder, are in India to meet officials at the State and Centre to push for resolving the deadlock.

According to a source close to the negotiations, there has been pressure on the Indian side to resolve the three-year-old problem. OPIC stepped into the picture after an independent arbitration panel in New York ordered an award of $28.57 million each to GE and Bechtel for claims they brought against the political risk insurer. Earlier, the Cabinet sub-committee headed by Mr Jayant Patil, Minister of Finance, had said the proposed per unit tariff from the 658 MW phase I should be brought down to Rs 2.40 from the earlier Rs 2.80 proposed by lenders.

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