Article Abstract:
Disagreement among India's political parties threatens to scuttle a $2.8 billion power plant project in Guhagar. The Dabhol Power Co. project, by far the country's largest foreign investment, is a joint venture between Enron Corp., Bechtel Enterprises Inc. and General Electric Capital Corp. Nationalist groups, hoping to score political mileage by squaring off against long-distrusted multinationals, are opposed to the project. Reform-minded officials, financiers and other foreign investors, however, warn that stopping the project would seriously affect India's long-term economic prospects.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
The state government of Maharashtra, India, announced the cancellation of a $2.8 billion electric power plant project, arguing that the project has become too expensive and environmentally risky. Analysts noted that the cancellation of the 2,015 megawatt facility will dampen foreign investor confidence in India and will adversely affect the national government's economic reform efforts. Given the country's pressing demand for energy, however, analysts predicted that the national government may opt to buy the project from Maharashtra and continue its construction.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
The state government of Maharashtra, India, has formed a committee to review the contract for a power plant being constructed by Enron Corp. The committee is expected to issue a nonbinding recommendation to shut down the project because it will charge higher prices for electricity. A decision by the government to shut down the project will have tremendous repercussions on foreign investments in the country.
User Contributions:
Comment about this article or add new information about this topic: