The per unit cost of power of DPC ranges between Rs 3.01 to Rs 4.70 depending upon the season and foreign exchange variations. MSEB does not rule out the possibility of a further hike in per unit cost following the frequent increase in fuel costs. DPC sells, on an average, 400 million units to the MSEB.

DPC has offered to sell power at the per unit cost exceeding Rs 3 to the neighbouring Karnataka state. However, MSEB is insisting that DPC should not sell its power at "cheaper" rates as it may clash with its interest in the long run. DPC has already visited Karnataka, Andhra Pradesh, Rajasthan and Tamil Nadu in this regard. However, among all Karnataka is the "most promising" one for the DPC. It has offered sell 50 mw of power from the phase-I (740 mw) and 100 mw from phase-II (1,444 mw). DPC is believed to have been impressed with the Karnataka government's initiatives to reform the power sector. Karnataka with an installed capacity of 4,216 mw needs additional power especially to meet the peak load demand of 15 per cent.

It gets 760 mw from the central generating stations. The KPTCL has procured 26,276 million units during 1999-2000.

The Karnataka government has already planned to unbundle the state electricity board by this year end while the distribution will be fully finalised by December 2001. The government has proposed the formation of three to four zones where private investment of nearly Rs 4,000 crore will be encouraged during the privatisation of electricity distribution.

MSEB's go ahead to DPC is of importance especially when the latter has earned a profit of Rs 198 crore during first year of its operations commenced in May 1999. DPC's 7th annual report said that the "excess capacity will be available through chiller loop modification."