Enron`s Dabhol Phase I Unaffected by Sanctions
Enron Corp. reports that Phase I of its Dabhol power project in India is four months ahead of schedule and will not be affected by U.S. sanctions against the nation. It should be complete in December.
The 2,450 MW power project is the largest U.S. private investment project in India. It is divided into two phases of 826 MW and 1,624 MW. The “fast-track” project has been an on-again, off-again situation due to Indian politics. It was approved following 1991 free market reforms in India. It is the largest of a handful of fast-track electric power projects under way in India in an attempt to curb the electricity shortage in that country.
The current U.S. sanctions follow India`s underground nuclear weapon testing in May. The sanctions are not retroactive and therefore will not have an effect on the first phase of the Dabhol facility, according to Enron`s predictions, although Enron leaders were uncertain whether the sanctions will affect phase two. p