In September 2001, Houston-based Enron Corporation (Enron) was embroiled in a long-running dispute with the various levels of government in India. The dispute involved Dabhol Power Company (DPC), 2184 megawatt (MW) power project in the Indian state of Maharashtra. The dispute began in the mid-1990s. In April 1995, Enron began construction of $ 2.8 billion power plant in Maharashtra. In August 1995, Maharashtrian government announced that the project was canceled on the basis of recommendations of the commission established by the Government to review the draft. Once the contract has been revised, construction resumed, and the first phase was completed in 1999. In 2001, the second phase of the project is made by 95%, Enron announced that it would sell its stake because the DPC payment dispute with its sole customer, Maharashtra State Electricity Board (MSEB), and the Indian central government's refusal to honor its counter-guarantee .
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by Andrew C. Inkpen Source: Thunderbird School of Global Management 18 pages. Publication Date: May 21, 2002. Prod. #: TB0159-PDF-ENG
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