Maharashtra state is under pressure to resolve the deadlock surrounding the suspended Dabhol power plant in the face of a growing power crisis.
The almost-completed IPP plant, about 180 km south of Mumbai, has been shutdown since 2001 following a dispute over power tariffs.
Now the government of Prime Minister Manmohan Singh is hoping two public-sector energy agencies will take over the plant before eventually selling it to private investors. However, before this can occur General Electric and Bechtel, which together bought Enron’s 65% stake in Dabhol last year, must negotiate a deal.
The parties are thought tbe be close to concluding a deal for around $300 million that will see a group of Indian financial institutions assume control of the stake.