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 Photo: Rediff.com
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BUSINESS The spectre of Dabhol The controversial Dabhol Power Company remains in the eye of the storm. The naphtha-fired power plant, promoted by bankrupt US energy major Enron, has been shut for the past two-and-a-half years following the plant owners' dispute with the Maharashtra State Electricity Board. Enron owns a 65 percent stake in Phase I of the project with MSEB holding 15 percent. The remaining 20 percent is shared equally between American majors GE and Bechtel. Aggrieved at not getting their dues, Bechtel Enterprises and GE filed an arbitration action against the Government of India, seeking about $600 million each as against their investment of $120 million each in DPC. An international tribunal ordered that the Indian government should pay up the amount. It also ordered that $28.5 million -- in political risk insurance claims -- be paid to GE and Bechtel by the Overseas Private Investment Corporation, a US government agency. The Indian government said it is under no liability to honour the claims raised by the overseas lenders and minority shareholders of the controversial plant. Bechtel, GE move against India
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