DPC is also undeterred by the MSEB decision to slap a penalty of Rs 400 crore for the supply of power below 90 per cent Plant Load Factor (PLF). The company has asked the MSEB not to use the penalty notice as a measure to further delay the payment of arrears, but settle this at the "dispute panel."

DPC has also said that the Dabhol plant is constructed on a base load factor basis and cannot cater to peak load demand. The company has reiterated that these technical issues can be resolved at a dispute panel comprising Enron India managing director K Wade Cline and MSEB accounts member A Krishna Rao.

Simultaneously, DPC has also made it clear that it would not make any unilateral offer, either for the reduction in the per unit tariff or any other solution to tide over the present crisis if MSEB continues to avoid its legal and financial obligations. The company has called for a collective discussion, involving the centre, the state government, the MSEB and DPC to find out various options to overcome the prevailing crisis.

"We are trying to be patient, but we expect that the MSEB and the state government should not further delay the payment," Mr Cline added. Mr Cline, who accompanied visiting reporters at the Dabhol plant site, said that the Government of India can bail out the MSEB and the state government by providing credit support to the buyer of Dabhol power, other than MSEB.

However, Mr Cline reiterated that the company was open for a dialogue as power would be needed for Maharashtra and the Centre as a whole. He said that the Centre and the state governments have yet to formally announce a decision on the sale of Dabhol power to a third party. Mr Cline claimed that the Dabhol phase-II power tariff would be competitive and range between Rs 3.37 and Rs 3.67 per kWh.

"The volatality of the Indian rupee, the hike in the international fuel prices and low despatch by the MSEB were largely responsible for the hike in the Dabhol phase-I tariff," he admitted. Enron India is contemplating installing a wind power project with a total capacity of 50 MW in two phases adjacent to the Dabhol power project in the Ratnagiri district. At present, Enron India's arm set up for the wind power generation is holding wind velocity tests at the hillocks near the Dabhol plant. The company proposes to set up 10 MW project in the first phase and a 15 MW project during the second phase. The company plans to sell this power to the MSEB.