The Dabhol mess
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24/05/2001
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Frontline (Chennai)
After years of battle, the Dabhol Power Company (DPC) and the Maharashtra State Electricity Board (MSEB) have initiated processes that could finally terminate the Enron-sponsored $3-billion, 2,184 -megawatt (MW) power project. Neither side has taken a decision regarding ending their relationship yet, but it is clear neither believes the relationship is sustainable. The current developments, it is suggested, constitute a crisis that could have serious implications for international investment in India. But the termination process also holds out the sole prospect of resolving the long-running controversy and saving the MSEB and the Maharashtra government from certain financial ruin.