8 November 2002 – The resumption of power generation at the stalled 2184 MW Dabhol power plant in India moved a step closer yesterday when Maharashtra state cabinet agreed to its utility resuming power purchases at a price of 2.80 rupees ($0.06) a kWh, reports the Financial Express
The Maharashtra State Electricity Board (MSEB) was the sole customer for Enron’s 740 MW Phase-I Dabhol power project until a dispute over payments forced the shutdown of the plant in June 2001. The Dabhol- MSEB dispute is being fought in the courts while the power company’s assets are under the jurisdiction of the Bombay High Court.
Dabhol is the largest foreign investment project in India to date at $2.9bn. Enron Corp. holds a controlling 65 per cent stake in Dabhol Power Co., while General Electric Co. and Bechtel Corp. own 10 per cent each. The MSEB holds the remaining 15 per cent stake.