Back to the table: Maharashtra agrees to consider an Enron compromise

Article Abstract:

Maharashtra state officials in India say they are willing to reopen talks with US-based Enron regarding a power project they cancelled in Aug 1995. The state government won the election on a platform of demonizing the company, and said the matter was closed, but apparently Enron's willingness to negotiate over the proposed power tariff changed their position. A better deal for the state would give the Bharatiya Janata Party political capital, increasing the threat it poses to the ruling Congress Party in upcoming elections.

Contracts, Design and construction, Electric power plants, Power plants, Maharashtra, India

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Politics as usual

Article Abstract:

The decision by India's Maharashtra state to breach its contract with Enron over the Dabhol power plant has slowed foreign interest in large, long-term infrastructure investments in the country. Popular outbursts against foreign companies help highlight the political nature of the controversy, and investors in other sectors, such as telecommunications, seem unperturbed. The dispute may ultimately help investment in India by forcing a more open bidding system into place and letting the legal system show its abilities.

Foreign operations

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Deal maker

Article Abstract:

Murasoli Maran is India's Industry Minister and he argues that there should be no need for his ministry. He has proved to be a champion of economic reform and has approved foreign investment worth around $3.1 billion in under 3 months in his post. He has pushed for greater transparency in applications and a reduction in processing times. Maran is in favor of any project likely to foster exports or employment and contribute technology and he is not opposed to investment in consumer industries.

Economic Programs, Administration of Economic Programs, Economic policy, Industrial policy

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