Conciliation proceedings on Enron begin

By Our Special Correspondent

NEW DELHI, AUG. 18. Conciliation proceedings began here today between the Centre and the Enron-promoted Dabhol Power Company (DPC) to resolve the dispute over the outstanding dues owed by the Maharashtra State Electricity Board (MSEB) to the $ 2.9- billion project which has since shut down operations.

The two sides declined to comment on the closed-door conciliation proceedings that would continue over the next three days.

The Centre is represented by the Law Commission Chairman, Mr. B. P. Jeevan Reddy, while the DPC has appointed the former Chief Justice of New South Wales, Sir Lawrence Street, as its representative on the three-member panel.

The former New Zealand High Court Judge, Mr. David A.R. Williams, is the third conciliator, jointly chosen by both the parties, official sources said.

The Attorney-General, Mr. Soli Sorabjee, on behalf of the Indian Government, is understood to have contested the invocation of its counter-guarantee by the DPC after the MSEB and the State Government defaulted in honouring Rs. 213 crores worth of electricity bills for December 2000 and January 2001.

The Centre had not honoured its counter-guarantee for the 740-MW phase-I of the DPC on the advice of the MSEB and the Maharashtra Government which claimed that the DPC had failed to pay up Rs. 401 crores emanating from short supply of power and that the dues must be adjusted against them.

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