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MSEB to file affidavit to defer Bhadravati power project

Wednesday, 02 May 2001
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Maharashtra State Electricity Board (MSEB) plans to file an affidavit within 8 weeks, before the Nagpur bench of the Bombay High Court, on its decision to defer the implementation of the 1,082 MW Bhadravati power project. MSEB has taken this decision in view of the Dabhol crisis and its own financial situation.

 

MSEB has termed the Bhadravati project as another Dabhol and stated that it may review its power purchase agreement with the promoter. This follows the report submitted by the Mr Madhav Godbole headed, Energy Review Committee, to review all the PPAs signed by MSEB with various independent power producers in the State.

 

Upholding MSEB’s decision, the Maharashtra State Government has put on hold the implementation of both the Bhadravati project and Reliance’s 447 MW Patalganga power project.

 

The Bhadravati project, being implemented by Central India Power Company of the Ispat Group, had received an escrow cover at 1.15 times of the monthly tariff payment based on the three months average payment to the Ispat Group in June 2000.

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