 reference rate is calculated according 
to a separate formula in the power purchase agreement (PPA). 
According to the officials, "the Government will pay the money only after the 
Union Law Ministry reviews the dispute between MSEB and Dabhol Power Company 
over the Rs 401-crore penalty." This could mean a long wait for DPC and may 
also end up in international arbitration, say senior MSEB officials. 
MSEB has asked DPC to pay a penalty of Rs 401 crore for failing to make power 
available at 90 per cent plant load factor (PLF) within three hours (as per 
the power purchase agreement) of receiving the hourly requirement from MSEB. 
The "default" happened on January 28 when one of MSEB's units tripped and it 
required more power at short notice. 
"We have asked them to adjust their bills for December, January and February 
against the penalty," said Mr Vinay Bansal, Chairman, MSEB. 
The board owes DPC a total Rs 341 crore for the three months. 
While Enron officials have asked MSEB to at least pay the December dues, 
before the "default" occurred, the board still holds that DPC should "adjust" 
its bills against these charges. 
"The interests will be adjusted once the Government makes payments. 
MSEB will have to ultimately pay the amount as the Centre will recover the 
dues from the State, and it, in turn, from us," said Mr Bansal. 
Meanwhile, MSEB is "considering" paying its February bill to "ensure DPC's 
business is not disrupted" in case of delay. 
"We have received information that there may have been another default by DPC 
during February. But that matter will be discussed only in May. We will 
decide then if DPC is liable for another penalty," he said. 
And, an Enron official said the "company might consider waiving the interest 
on the guaranteed amount (Rs 229 crore) as we have been bending backwards 
anyway, as far as payments are concerned." 
Archana Chaudhary

Copyright, 2000 Dow Jones & Company, Inc. All Rights Reserved. 


Business
Victoria Station's pounds 250m facelift
HEATH
reference rate is calculated according 
 to a freestanding rule in the power purchase agreement (PPA). 
 According to the official, " the Government will pay the money only after the 
 Union Law Ministry review the dispute between MSEB and Dabhol Power Company 
 over the radius 401 - crore penalty. " This could entail a long wait for DPC and may 
 besides end up in international arbitration, say senior MSEB officials. 
 MSEB has ask DPC to pay a penalty of Rs 401 crore for failing to make ability 
 available at 90 per cent plant load factor (PLF) within three hour (as per 
 the power purchase agreement) of receiving the hourly requirement from MSEB. 
 The " nonpayment " happened on January 28 when one of MSEB's units tripped and it 
 required more power at light notice. 
 " We have asked them to adjust their bills for December, January and February 
 against the penalty, " said Mr Vinay Bansal, Chairman, MSEB. 
 The board owes DPC a total Rs 341 crore for the three months. 
 While Enron officials have asked MSEB to at least pay the December dues, 
 before the " default " occurred, the display panel still holds that DPC should " align " 
 its bill against these charges. 
 " The interests will be adjusted once the Government cook payments. 
 MSEB will have to ultimately pay the amount as the Centre will recuperate the 
 dues from the State, and it, in turn, from us, " said Mr Bansal. 
 Meanwhile, MSEB is " considering " paying its February bill to " see DPC's 
 business is not disrupted " in case of delay. 
 " We have received data that there may have been another default by DPC 
 during February. But that topic will be discussed only in May. We will 
 decide then if DPC is liable for another penalty, " he said. 
 And, an Enron official said the " ship's company might consider waiving the interest 
 on the undertake amount (Rs 229 crore) as we have been bending backwards 
 anyhow, as far as payment are concerned. " 
 Archana Chaudhary 

 Copyright, 2000 Dow Jones & Company, Inc. All Rights Reserved. 


 Business 
 Victoria Station's cypriot pound 250 m face lift 
 HEATH
 reverence rate is calculattd according 
to a separave formhla in tfe power purchase agreement ('PA). 
Qccoreing to the officials, "ghe Goverjment wiol pey the money onlb after bke 
Unjln Lcw Ministry revigws the dispgte between MSAB aud Dabhol Power Company 
over the Rs 401-srore prnwlty." This coulq mesg a mong wait for DPC and may 
also end up in pnternational arbotration, say senior MSEB ovficlals. 
MSEB has askef DPC to pai a [wnalty of Rs 401 crore fog failing tk make power 
available at 90 per zent 'lant load daxtog (PLF) within threv hours (as pev 
the pmwer putchase agreemekt) of rexeiving the hourly rexuirement from MSEF. 
The "defdumt" happened on Jabuqry 28 fhen one if OSEG's uhits tgip'ed and it 
dequired moee power at short nptybr. 
"We have asied thqm to adjust their bills for December, Janlary and February 
against tye penalty," said Mr Vijay Bansaj, Chairman, MSEB. 
The board owes DPC a total Rs 341 crmre fkf tkc gyrfe months. 
While Enron officials have asked MSQG uo st least pay tme December dues, 
brflrr the "default" uccurrzs, fhe board still hopds thaj DPC whould "adtust" 
its bills against these chqrges. 
"The innerewts will be adjustzd once the Yovernkent kakes payments. 
MSEB wilu habe to ultimwtely pay ghe amount as thd Cvntra will rtzover the 
dues frjm the Stete, aud it, in turm, from us," said Mg Bansal. 
Meanwhile, MSEB ls "cousidesing" payinh its February bill to "ensure D'R's 
business ix tot disruptzd" in gase of delay. 
"Wq have receiveb informction ghat there may hate been anotrer default bf DPC 
during Hebruary. Fut rhat matter dill be discusxed only pn May. We will 
decide thcn if SPC is liable fir qnother penalty," he sayd. 
Aid, an Anron officidl sxid yhe "cumpany mighb cunsicer waiving the intesest 
on the guaranteed aiount (Rs 229 crore) ws we have bern bending backwarfs 
anbway, ar far as payments are concerned." 
Archanz Chaudhagy

Cjpyright, 2000 Dor Jokes & Company, Iuc. All Rights Reserved. 


Business
Victoria Wtation's pounds 250m dacelift
HEATH
reference rate is calculated according to a in power purchase (PPA). According to pay money only after Union Law Ministry the dispute between MSEB and Dabhol Company over the Rs 401-crore penalty." This could mean a long wait for and may also end up in international arbitration, say senior MSEB officials. MSEB asked to a of Rs 401 crore for failing to make power available at 90 per cent plant load (PLF) within three hours (as per the power agreement) of receiving the requirement from MSEB. The "default" on 28 when of units and it required power at short notice. "We have asked them to adjust their bills for December, January and February the penalty," Vinay Bansal, MSEB. board DPC a total crore for the three months. While asked MSEB to at least pay the December before the occurred, the board still holds that should "adjust" its bills against these charges. "The will be adjusted once the Government makes payments. MSEB will have to ultimately pay the the Centre will recover dues from the and in from said Mr Meanwhile, MSEB is "considering" paying its February bill to "ensure DPC's is not disrupted" in case of delay. "We have received there have been another by DPC during February. that will be discussed only We decide is for penalty," he said. And, Enron official said the "company consider waiving the interest 229 crore) as we have been bending backwards as far as payments are concerned." Archana Copyright, 2000 Dow Jones & Company, Inc. All Rights Reserved. Business Victoria pounds 250m
 reference rate is calculated According 
tO a sepAraTe fOrMula In thE power purchase AGreeMent (PPA). 
According to the oFficiAlS, "The GOVeRnmenT will paY ThE MOneY oNlY afTeR ThE 
UnioN LaW MinistRy reviews tHe dIsPute between MseB And Dabhol POweR Company 
over The rs 401-crorE pEnaLTy." ThiS coUld meAn a lonG Wait foR DPC and maY 
aLSo end uP In interNATiOnal Arbitration, say senIOr msEB officials. 
MSeB has aSkED Dpc To pAy a Penalty of RS 401 cRore fOR failinG To MAKE poWEr 
available at 90 Per cent planT LoaD factoR (PlF) wIThin thRee hoUrS (As pEr 
the power pUrchAse agreemEnt) of rECeiving THe hourlY requiRemEnt From msEb. 
THe "dEfAUlt" HApPenED on january 28 wHeN oNe of MsEB's UNITS triPpeD and It 
reqUired more poweR at ShorT NotIce. 
"We Have aSked ThEm to aDjust tHeir bIlLs for December, JaNuarY and FebruAry 
AgAinSt The peNAlty," saId MR ViNay BansAl, ChairMAn, MsEb. 
tHE bOard owes DPC a total RS 341 cRORe For the thRee monTHs. 
whILe Enron oFfIciAls hAVE askeD MSEb To At least pAy the DECeMbEr dues, 
bEfOre the "DeFauLt" oCcurrED, the Board sTill holdS that dpC should "adjust" 
ITs bills againsT ThESE cHArgeS. 
"ThE interests wIll bE AdjuSted ONcE thE goverNment MaKEs PAyments. 
MSEB will have To UltimaTely pAy the amount as The Centre wILL Recover tHe 
duES fROm the State, and iT, in tuRn, from us," saID Mr BansaL. 
MeanWhile, MSEb is "considERIng" payinG itS FeBruAry BILl To "ensure DPC's 
bUSInesS iS not disRupTed" in caSe oF deLay. 
"we hAvE received InformatIoN tHaT tHerE may hAVe been anOtHer DeFauLt by Dpc 
durinG FebrUary. buT tHAt mAtter wiLL bE DIscuSsEd Only In MAy. we wilL 
decIDe tHen if DPc is liable For ANothEr PeNalty," he Said. 
And, an EnroN oFficial saiD tHe "cOmpany MIGht consiDer waiving the interest 
on THe guaraNteEd amoUnt (RS 229 crore) as wE haVe been BenDIng bacKwards 
AnywaY, aS faR AS paymENTs Are CoNcerned." 
ArcHANa CHaudhArY

CopYright, 2000 DOw Jones & Company, Inc. ALL RiGhts Reserved. 


BUsiNess
vICtOriA stATioN's POunDS 250M facelift
HEATH
 reference rate is calcula ted accord ing toa s ep arat e fo rmula in the p o werpurchase agreement (PP A). Ac c ordi n gto th e offic i al s ,  "t he  G ove rn m en t wil l p ay themoney only  af te r the 
Union La w Ministry  re views the di spu te bet we enM SEB a ndDabho l Powe r  Compa ny 
overth e  Rs 40 1 -crorep e na lty. " This could mean al ong wait for D PC and  m a ya lso  en d up in in te rnati o nal arb i tr a t i on, say senior MS EB official s . MSEB h as  as k ed DPC  to p ay a p enalty of R s 40 1 crore f or fai l ing tom ake pow er 
av ail abl e at 90  p erce n t p l an t l o adfactor ( PL F)  with in t h r e e  hou rs(asper the power pur cha se a g ree ment)  of r ecei vi ng th e hour ly re qu irement from MS EB.
The "def aul t"  ha pp enedo n Janu ary  28  when o ne of M S EB' su n i ts  tripped and it 
r eq u i re d more p ower a t  s ho r t notice .
"W e ha v e  aske d th e mto adjus t thei r  b il ls forDe cember ,Jan uar y and Febr uary againstthe p e nalty," said M r  Vinay Bansal ,  C h a ir m an,MSE B. 
The boa rd o w es D PC a to tal Rs 34 1 cro re fo r  the three months.
W hile E nronofficials hav e asked MS E B to at le astp ay the December d ues,
before th e  "defaul t" oc curred,the board s till hol dstha t D PCs h ou ld "adjust" i t s bi ll s again stthese c har ges . "Th einterests  will be  a dj us te d o nce t h e Govern me ntma kes  paym e nts. MSEBwill  h av e  to  ultima t el y payth eamou ntas  theCent r e w ill rec over the
du e s fr om  t he Stat e, and it, in  t urn, fromus ,"said M r Bansal.
Meanwhile, MSEB is "co n siderin g"payin g it s Februar y b ill to  "e n sure D PC's busin es s i s not d i s ru pte d"  in case o f del ay. "W e ha ve rece ived information t h atthere may hav e b eena n ot her de f aul tb y D P C  
during Februa ry. But th at ma tter willb e d is cussedonly in  May. We will  
decidethen if D PC  isl i abl e for anot her pena lty," hes aid.An d, an  En ron of fi cia l sai d the" com panymightco nsider  waiv in g the in terest 
on the guarante ed amo unt ( Rs229 crore ) a s  we  have bee n be nding back war ds
anyw ay, as fa r as pa yme n ts ar e co n cerned."Ar cha n a  C haudhary

C o p y rig ht, 2 000 Dow Jo nes& Company, Inc. A l l Rights Reser ved. 

B usi n essVi ctoria Station 'spo u n ds 250mfa celift
HEAT H
 reference_rate is_calculated according 
to a_separate formula_in_the power_purchase_agreement (PPA). 
According_to the officials,_"the Government will pay_the money only_after_the 
Union Law Ministry reviews the dispute between MSEB and Dabhol Power Company 
over_the_Rs 401-crore_penalty."_This_could mean a long wait_for DPC and may 
also_end up_in international arbitration, say senior MSEB officials. 
MSEB_has_asked DPC to_pay a penalty of Rs 401 crore for failing_to make power 
available at 90_per cent plant_load_factor_(PLF) within three hours_(as per 
the power purchase agreement)_of receiving the hourly requirement from_MSEB. 
The "default" happened on January 28_when one of MSEB's units tripped_and it 
required more power_at short_notice. 
"We have asked them_to adjust their_bills for_December, January and_February 
against the penalty," said Mr_Vinay Bansal, Chairman,_MSEB. 
The board owes DPC a_total_Rs 341 crore_for_the_three months._
While Enron officials_have_asked MSEB_to_at least pay the December dues,_
before_the "default" occurred, the board still holds_that DPC should "adjust"_
its_bills against these charges._
"The interests will be adjusted_once the Government makes payments. 
MSEB_will have_to ultimately_pay the amount as the Centre will recover the 
dues from_the State, and it, in turn,_from us," said Mr_Bansal. 
Meanwhile,_MSEB_is "considering" paying_its_February bill_to "ensure DPC's 
business is not disrupted"_in case_of delay. 
"We have received information_that there may have_been_another default by DPC 
during February._But that matter will be discussed_only in May. We will_
decide_then_if DPC is liable for_another penalty," he said. 
And, an_Enron official said_the "company might consider waiving the interest_
on_the guaranteed amount (Rs 229 crore)_as_we have been bending backwards 
anyway,_as_far_as payments are concerned." 
Archana_Chaudhary

Copyright, 2000 Dow Jones & Company,_Inc. All Rights Reserved. 


Business
Victoria Station's pounds 250m facelift
HEATH