India may resuscitate disputed Enron plant: summer shortages give new life to India's biggest power project

An unprecedented power crisis in India's western state of Maharashtra has prompted fresh talks to complete and turn on the 2284 MW Dabhol power plant, which was abandoned after local authorities and an Enron-led consortium came to an impasse over electricity pricing in 2000. The improved prospects for Dabhol, in turn, have awakened hopes that India's entire power industry may finally change for the better as it is reorganized to respect market principles and encourage new technology. With the Indian state-owned firms National Thermal Power Corp. and Bharat Heavy Electricals Ltd, the American firm General Electric Co., which took over Enron's 65% stake, has decided to stay on as a contractor. GE has been devising a plan to start a smaller unit at Dabhol and then complete the rest of the project.