Dabhol Power Company

See also: Dabhol Power Station

The Dabhol Power Company (now called RGPPL - Ratnagiri Gas and Power Private Limited) was a company based in Maharashtra, India, formed in 1992 to manage and operate the controversial Dabhol Power Plant.[1] The Dabhol plant was built through the combined effort of Enron as the majority share holder, and GE, and Bechtel as minority share holders.[2] GE provided the generating turbines to Dabhol, Bechtel constructed the physical plant, and Enron was charged with managing the project through Enron International.[3] From 1992 to 2001, the construction and operation of the plant was mired in controversies related to corruption in Enron and at the highest political levels in India and the United States (Clinton administration and Bush administration).[4] The price that the state electricity board would have to pay for electricity produced by DPC (8 Rs/unit) was more than 20 times what it paid for hydroelectricity (Rs. 0.35/unit).[5]

In 1998, MSEB purchased half of Enron's equity stake. In May 1999, the power plant began producing energy. In January 2001 the state of Maharashtra stopped paying DPC and sought to cancel the purchase agreement. In May 2001, the power plant ran into further trouble due to Enron scandal leading to the bankruptcy of Enron and had to stop production.[6]

In 2005, it was taken over and revived by converting it into the RGPPL (Ratnagiri Gas and Power Private Limited), a company owned by the Government of India.[7]

  1. ^ Roy, Sandip (7 February 2002). "Enron in India - The giant's first fall". No. March 2002. Outlook. Pacific news Service. Retrieved 25 October 2016.
  2. ^ Madhav Godbole committee report on irregulatiries in the Enron Dabhol power project. Mumbai: Government of Maharashtra. 10 April 2001. Retrieved 26 November 2018.
  3. ^ Pune, Prayas (9 June 2001). "Godbole Committee on Enron Project: Expose and Way Out". Economic and Political Weekly. Archived from the original on 26 November 2018. Retrieved 26 November 2018.
  4. ^ US Government Minority Staff Committee on Government Reform. "FACT SHEET - Background on Enron's Dabhol Power Project (22 February 2002)" (PDF). U.S. House of Representatives. Archived from the original (PDF) on 25 October 2016. Retrieved 25 October 2016.
  5. ^ "Cost cokparison - Dabho Enron vs Hydroelectricity". www.bartleby.com. Bartleby. Retrieved 26 November 2018.
  6. ^ Bhushan, Ranjit (30 April 2001). "Godbole committee report and The Real Story Of Dabhol". No. May 2001. Outlook India. Retrieved 25 October 2016.
  7. ^ "RGPPL Official website". www.rgppl.com. Retrieved 29 October 2013.