Dabhol: Another One-sided Seal?


Dabhol: Another One-sided Seal? It is now clear that negotiations to settle the Dabhol imbroglio are at an advanced stage and that the government hopes to resolve all outstanding issues soon. The details of the settlement package on the controversial power plant that was promoted by Enron are not known and there do remain a number of rough edges that have to be smoothened out. But from media reports it does appear that discussions with equity holders, lenders and equipment suppliers are now at an advanced stage and the beleaguered consumer of power-deficit Maharashtra can look forward to the addition of 2,184 MW of capacity once the plant is revived. However, the manner in which the negotiations are being conducted and from the limited information that is available in the public domain, there can be little confidence that we are going to see a satisfactory closure of an ugly episode in the recent history of India