US engineering firm Bechtel and the governments of India and Maharashtra have confirmed that a settlement has been reached regarding the Dabhol power project.
In exchange for $160 million in compensation for its equity and contractor claims, Bechtel has agreed to forgo international arbitration over the expropriation of its investment.
Bechtel and the relevant Indian parties have agreed to cooperate to terminate all other legal actions in the Dabhol case, including contempt citations against Maharashtra Power Development Corp (MPDCL) and a Bechtel affiliate. Bechtel will also lift its orders to attach MPDCL’s shares in DPC and other assets.
Bechtel acknowledged the role of high-level representatives of the Indian government in facilitating the deal and is prepared to assist in the restart and completion of the facility.
A portion of the financial settlement was subject to Indian taxation.
Bechtel is expected to transfer its original 10% interest in Dabhol Power Co (DPC) to Newage Power Company Private, an Indian entity.