Dabhol invokes political 'Force Majeure'

Vol 5, PW 4 (11 Apr 01) News in Brief

In the latest escalation of the Enron-Maharashtra dispute, Dabhol Power Company on April 7th sent Maharashtra State Electricity Board a notice of political 'Force Majeure' - the first ever in its eight years of turbulent stay in India.

The notice says that, "the concerted, deliberate and politically motivated actions of government of Maharashtra, government of India and Maharashtra electricity board will have a material and adverse effect on Dabhol Power Company's ability to perform obligations under the Power Purchase Agreement." A week before sending the notice, DPC issued a "notice of conciliation and arbitration" to the government of India for an overdue amount of Rs102cr ($22.4m).