Observing that Shree Maheshwar Hydel Power Corporation Ltd. (SMHPCL), the private promoters of the Maheshwar dam project, had failed to begin commercial operation and had no funds to complete the project and rehabilitate the displaced, the Madhya Pradesh Government has threatened to terminate the project’s power purchase agreement.

A notice of default, a copy of which is with The Hindu , was issued by the MP Power Management Company Ltd (MPPMCL) in November last year but came to light only last week.