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GE poised to restart former Enron plant in India
By agencies
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Friday, 24 June 2005, 19:30 IST
NEW DELHI: The Indian unit of U.S. based General Electric Co. said today it expects to reach an agreement this month on restarting the 2,184-megawatt Dabhol power project in western India after four years.
"We are quite pleased with the progress of discussions. We think we should be able to reach an agreement by the end of this month," GE India President Scott Bayman said.
The Dabhol project was shut down in June 2001 after a dispute over electricity tariffs between the owner at the time, Houston-based Enron Corp., and its only customer, the Maharashtra State Electricity Board. The dispute also halted construction of a second plant at the site.
GE and U.S. based Bechtel Group Inc. together own 85 percent of the Dabhol project. The Maharashtra State Electricity Board owns the remaining stake.
Efforts to restart the project after Enron's bankruptcy had failed because of disagreement among the stakeholders including the Indian government, which extended guarantees to the project on debt restructuring and tariff plans.