BHOPAL: The state government has initiated legal proceedings to terminate power purchase agreement with Maheshwar Hydel Power Corporation Limited, starting with serving a legal notice of default to the promoters of the company. Delay in execution of the project is said to be the major reason for this action.

Notice has been served as project activities of the Maheswhar project are at a standstill and no funds are available for the completion of the project and rehabilitation and resettlement of the oustees. As no payments have been made, M/s BHEL and other contractors have withdrawn their personnel from the dam site.