notice, Bansal said. 
Indian lenders, present at a meeting with foreign financial institutions in 
London earlier this week, have said they favor renegotiation. 
The state power utility has said it cannot pay Dabhol's monthly electricity 
bills, since rates for power have nearly quadrupled. 
That prompted Dabhol to invoke a federal guarantee in February, the first 
time in India that such a federal guarantee was invoked. As part of the 1995 
agreement between the company and the state government, the federal 
government must pay in case of a state default. 
But before the federal government stepped in, the state government paid $17 
million in outstanding bills. Since then, the state power utility has 
confirmed that all pending bills have been paid. 
However, a dispute over payment of $48 millionon line at the end of 2001. 
But the company's frustrations are obvious. This week the board of the Dabhol 
Power Co., Enron's India subsidiary, authorized the company's managing 
director to issue a preliminary notice that could lead to termination of the 
power project. 
Enron says it is owed $48 million for power delivered in December and 
January. The February power bill has already been paid, and Krishna Rao, 
member of the Maharashtra State Electricity Board, said Wednesday the March 
electricity bill was being paid. 
Rao said renegotiation of the existing contract was the next step. 
"The government and DPC have to come together," he said. "The termination 
notice will have to wait till negotiations actually begin." 
Indian lenders insist it is impossible for Enron to pull out