New Delhi: Finance Minister Yashwant Sinha on Tuesday said the government had agreed to the conciliation process in the wake of Dabhol Power Company (DPC) invoking the political force majeure Clause citing political interference.

"We will go ahead with conciliation," Sinha told reporters on the sidelines of a conference of state textiles ministers.

Invoking the clause, DPC had said it was unable to discharge its obligations under the power purchase agreement with the Maharashtra government and its electricity board due to political interference from both the State and the Centre.

The decision on conciliation was apparently taken at a meeting between the Secretaries of Finance, Power and Law Ministries on Monday evening. After weighing all options, the officials felt that the conciliation process was the only way to resolve the issue.

The dispute stems from the stand of the Maharashtra State Electricity Board's (MSEB) that the bill of Rs 102 crore was offset by outstanding dues from DPC relating to mis-declaration of capacity in January 2001.

On alleged political interference, DPC has cited the delay in the finalisation of the report of the Godbole Committee, set up earlier in 2000, to review the project.

DPC also contends that the controversy over the first phase has made it difficult for it to raise funds for the second phase.

UNI

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