ELECTRICITY

Price for Enron's Indian asset expected to fall

The Indian media has reported several foreign and domestic firms have submitted bids for the controversial Enron-owned Dabhol power plant. Now that Enron has declared the biggest bankruptcy in US corporate history, the price of this Enron asset is expected to fall substantially.

The Dabhol power plant was once dubbed as the "largest foreign direct investment India has ever seen," but was plagued with problems from the outset. At one time, customers of the power plant refused to pay their bills claiming prices were twice as high as alternative sources. The debacle over non-payment even began to impact negatively on Indo-American relations.

Some of the companies thought to have submitted bids include Royal Dutch/Shell, TotalFinaElf and Gaz de France as well as local outfits such as Tata Power Company and The Gas Authority of India.

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A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

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