India's Negotiations Concerning the Dabhol Power Company 2001-2005
(2 pages of text)
In 2001, the Dabhol Power Company (DPC) ceased operations following several years of bitter acrimony between the state of Maharashtra and the foreign owners. GE and Bechtel each owned 10 per cent of the equity, the Maharashtra State Energy Board (MSEB) owned 15 per cent and Enron owned 65 per cent. The Overseas Private Insurance Corporation (OPIC), a U.S. government agency, had lent $138 million and also had provided insurance against "political risk" for some of the other 19 foreign lenders. The lengthy and convoluted experiences of the Enron Dabhol power project are described in detail in Andrew Inkpen's case Enron and the Dabhol Power Company, Thunderbird Case # A07020008. The purpose of India's Negotiations Concerning the Dabhol Power Company 2001-2005 is to discuss the negotiation between the various foreign investors and the government of India in an attempt to reactivate the Dabhol project. Ultimately, in 2005 a settlement was negotiated. This case adds a further dimension to the case by Andrew Inkpen, and it can be taught most effectively as a sequel to that case.
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