In 2001, the Dabhol Power Company’s operations ended (DPC) after several years of bitter bitterness between the state of Maharashtra and the foreign owners. GE and Bechtel each owned 10 percent of shares owned the Maharashtra State Energy Board (MSEB) 15 percent and 65 percent owned by Enron. The Overseas Private Insurance Corporation (OPIC), a U.S. government agency, had borrowed $ 138 million and had also provided insurance against “political risk” for some of the other 19 foreign lenders available. Th … Read more »

In 2001, the Dabhol Power Company’s operations ended (DPC) after several years of bitter bitterness between the state of Maharashtra and the foreign owners. GE and Bechtel each owned 10 percent of shares owned the Maharashtra State Energy Board (MSEB) 15 percent and 65 percent owned by Enron. The Overseas Private Insurance Corporation (OPIC), a U.S. government agency, had borrowed $ 138 million and had also provided insurance against “political risk” for some of the other 19 foreign lenders available. The lengthy and complicated experience of the Enron Dabhol project are described in detail in Andrew Inkpen case “Enron and the Dabhol Power Company,” Thunderbird Case # A07020008. The purpose of “India’s negotiation of the Dabhol Power Company 2001-2005” it, Dabhol discuss the negotiations between the various foreign investors and the government of India in an attempt to reactivate the project. Finally, in 2005, a settlement was negotiated. This case adds another dimension to the case of Andrew Inkpen, and it can be effectively taught as a sequel to this case.
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from
David W. Conklin,
Danielle Cadieux
Source: Ivey Publishing
2 pages.
Publication Date: Aug 22,, 2006. Prod #: 906M74-PDF-ENG
India’s negotiations on the Dabhol Power Company 2001-2005 HBR case solution