Govt not to pay Dabhol claims

The government claimed it was under no liability to honour claims, worth over a billion dollars, raised by overseas lenders and minority shareholders of the controversial Dabhol power plant.

Responding to a question in the Lok Sabha, Minister of State for Power Jaywanti Mehta said, "As per information made available by the finance ministry, no liability has so far arisen, which requires the government, either as a result of mutual settlement or an arbitration award, to honour such claims."

Mehta said offshore lenders had initiated claims worth Rs 722 crore from the Centre whereas the minority shareholders "" Bechtel Enterprises and GE Finances "" had filed an arbitration claim of $1.26 billion against the government.