Price of power
-
20/05/2001
-
Economic Times (New Delhi)
The Dabhol Power Company (DPC) has put the Maharashtra State Electricity Board (MSEB), the government of Maharashtra and the central government on notice by asking for a termination of its power purchase agreement (PPA) with the Maharashtra utility. The writing has been on the wall for the past few months. In fact, many would say it was there right from the very beginning. DPC has been controversial for a long time-- two successive state governments have signed and reworked PPAs with India's largest private sector power generation project. Relations have deteriorated since DPC's phase I acutally started generating electricity and the MSEB failed to purchase as much as it was supposed to, escalating the unit cost of power . (Editorial)