July 19 2002 – India’s government Thursday denied local media reports on the possibility of the state-owned National Thermal Power Corp. taking over the 2184 MW Dabhol project in the state of Maharashtra.
“It is clarified by the (Power) Secretary that there is no question of NTPC taking over the Dabhol power project or even running it on a management contract basis,” a government statement said.
Dabhol ceased operations last year after its sole buyer, the Maharashtra State Electricity Board, stopped paying its electricity bills to the Dabhol Power Co., saying the firm’s per-unit tariff was unaffordable. The Dabhol-MSEB dispute is being fought in the courts.
US energy firm Enron Corp. holds a 65 per cent stake in the Dabhol Power Co., while MSEB owns 15 per cent. General Electric Co. (GE) and Bechtel Corp. each own a ten per cent stake.
Dabhol is the largest foreign investment project in India to date at $2.9 billion.