MSEB, which is reeling under severe financial crisis, has predicted a monthly loss of Rs 442 crore following power purchase of 1,415 MUs from phase-II since January 2002. MSEB has estimated a revenue of Rs 50.73 crore from the sale of monthly sale of 203 MUs of DPC's phase-I.

In case of phase-II, MSEB's revenue from the sale of 1,132 MUs at Rs 2.5 per KWH is expected to increase to Rs 283 crore.

During first phase-I, MSEB's monthly payment to DPC at Rs 7 per KWH would be Rs 177.8 crore. However, it would shot up at Rs 725 crore during power purchase from phase-II.

These projections, which have been prepared by the MSEB and the state energy department, would be discussed at a crucial breakfast meeting between the Chief Minister Vilasrao Deshmukh and the visiting US Ambassador Richard Celeste at the former's official residence "Varsha."

Mr Deshmukh would be accompanied by the Energy Minister Padmasinh Patil, Finance Minister Jayant Patil, MSEB chairman Vinay Bansal, Energy Secretary VM Lal, while Mr Celeste would lead a team comprising Enron Mauritius Company director K Wade Cline, DPC president Neil McGregor, DPC senior vice president Mukesh Tyagi.

Mantralaya sources told The Financial Express that Mr Celeste's visit although is a "goodwill mission" for promoting trade, the Dabhol power project would come up during tomorrow's discussion. The government would also inform a team, led by Mr Celeste about its intention to set up an experts group to review and renegotiate Dabhol phase-II which has come under severe attack from the constituents of Democratic Front government in the state.

The state government and MSEB have admitted that MSEB is finding it difficult to make timely payments for the bills of DPC, "since its revenue realisation is quite low at Rs 800 crore per month as compared to its expenses of Rs 1,100 crore." "Due to cash deficit, MSEB is making late payments for the period ranging between 6 to 30 days since January 2000," MSEB and the government added.

Furthermore, both MSEB and state government have admitted that off-take from DPC has been restricted to 30 to 35 per cent plant load factor (PL) due to "liquidity problem." They have said that DPC tariff has been high due to dollar exchange rate, international fuel (naphtha) price and lower off-take.

MSEB and the state government have reiterated that MSEB's normal monthly bill, for the power purchase from block one of phase-II commencing from June this year would increase at Rs 500 crore. This would further rise upto Rs 650 crore after the commissioning of block two of phase-II in October this year. "Even at the minimum off take, monthly bill will not be less than Rs 600 crore due to liquified natural gas take or pay liability."

According to the state energy department, MSEB's revenue need would rise upto Rs 1,600 crore per month to make DPC payments and discharge its other liabilities in the year 2001-02. "MSEB has approached the state government for support so as to make monthly payments to DPC," the energy department added.

The state energy department has said that a way out needs to be found out so that "MSEB's liability to purchase power from DPC is minimised." The energy department has not forget to mention the consequences in case of default in payments to DPC. It has said that if MSEB fails to pay the amount of $1,00,000 or above outstanding for 21 days, DPC has the option to serve a preliminary termination notice.