The state government and the Maharashtra State Electricity Board (MSEB), which hold 15% stakes in troubled Dabhol, the IPP project originally developed by ill-fated Enron in a joint venture with GE and Bechtel, have called for an speedy resolution of the on-going dispute. MSEB has been shedding more than 2,250 MW of load during peak hours and has been forced to buy in power from private sector players to meet demand.
The state government has made considerable effort to revive the now closed Dabhol project and its fate now rests with the central government, which held talks with owners GE and Bechtel last month over the settlement of non-debt claims of $400 million made by Bechtel.
Dabhol, a 2,200 MW, $3 billion, LNG-fired power plant was originally conceived in 1992 and is located near Mumbai, formerly Bombay. Due to have gone online by 1997, disputes over prices and the terms of the deal saw development put on hold in June 2001, with the project about 90% complete. Work has not resumed.
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