Intervention by the Indian central government over the stalled Dabhol project has seen a resolution signed that will see a settlement with GE.
Maharashtra State Electricity Board (MSEB) and its Maharashtra Power Development Corp has agreed to pay GE $145 million to resolve the on-going deadlock.
MSEB will buy the entire output from the 2,184 MW Dabhol project at Rs 2.30/kWh (¢5.7/kWh) and will buy a 15% stake in the proposed special purpose vehicle that is to be formed to revive the project.
Bechtel, which is in separate negotiations with the state government, may now move towards settlement.