MUMBAI, May 22: The Maharashtra government is negotiating with Enron Development Corporation's Dabhol Power Company (DPC) over the terms for acquiring 30 % equity stake in DPC, decided upon during the protracted negotiations for revival of the 2,184 MW gas-based project.

DPC wants Maharashtra State Electricity Board (MSEB) to not just pay up the par value of the equity to be subscribed, but also the ``pre-operative expenses'' incurred for the project and make a commitment to bear any cost overruns in completion of the project at Guhagar in Ratnagiri district, Maharashtra's Energy Secretary Asoke Basak told PTI.

This is why the projected requirement to acquire the equity stake has been put in the wide range of Rs 470 crore to Rs 740 crore, Basak said.

``We are telling DPC not to bind MSEB to a commitment on cost overruns because delay is an unlikely event as the project is going to be completed within schedule,'' he said, adding that in any case this portion of the burden for acquiring the equity stake would not have to be contributed now.

MSEB, through a special purpose vehicle, is preparing to raise Rs 600 crore by private placement of bonds to enable it to subscribe to the equity, which at par value works out to about US $ 96.84 million.The DPC spokesperson, when contacted, refused to divulge the amount of pre-operative expenses that would have to be borne by MSEB.

``We are not charging MSEB any premium on equity. We are offering equity on the same terms as has been acquired by Enron, General Electric and Bechtel,'' DPC spokesperson said.

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