Editing Enron (section)

==== India ====
Around 1992 [[India]]n experts came to the United States to find energy investors to help with India's energy shortage problems.<ref name="mclean" /> During December 1993, Enron finalized a 20-year power-purchase contract with the [[Maharashtra State Electricity Board]].<ref name="mclean" /> The contract allowed Enron to construct a massive 2,015 megawatt power plant on a remote volcanic bluff {{convert|100|mi|km}} south of Mumbai through a two-phase project called [[Dabhol Power Station]].<ref>Fox, Loren. [https://books.google.com/books?id=3-qvLpoYXUIC&pg=PA50 ''Enron: The Rise and Fall'']. John Wiley & Sons, 2004. pp. 50–51.</ref> Construction would be completed in two phases, and Enron would form the [[Dabhol Power Company]] to help manage the plant. The power project was the first step in a $20&nbsp;billion scheme to help rebuild and stabilize India's power grid. Enron, [[General Electric|GE]] (which was selling turbines to the project), and [[Bechtel]] (which was constructing the plant), each contributed 10% [[Equity (finance)|equity]] with the remaining 90% covered by the MSEB <ref>Moffett, Michael H. [https://www.scribd.com/doc/191623372/Enron-1 ''What Happened at Enron?''] [[Thunderbird School of Global Management]], 2004. p. 5.</ref>

In 1996, when India's Congress Party was no longer in power, the Indian government assessed the project as being excessively expensive, refused to pay for the plant, and stopped construction.<ref name="mclean" /> The MSEB was required by contract to continue to pay Enron plant maintenance charges, even if no power was purchased from the plant. The MSEB determined that it could not afford to purchase the power (at Rs. 8 per unit kWh) charged by Enron. The plant operator was unable to find alternate customers for Dabhol power due to the absence of a free market in the regulated structure of utilities in India.{{Citation needed|date=January 2012}}

By 2000, the Dabhol plant was almost complete and Phase 1 had begun producing power.<ref>Shahi, R. V. [https://books.google.com/books?id=a7ZvQNb_7V0C&pg=PA49 ''Indian Power Sector: Challenge and Response: Compilation of Papers Presented During 1991–2001'']. Excel Books India, 2006. p. 49.</ref><ref>Conklin, David W. [https://books.google.com/books?id=Ppjam4YUSiUC&pg=PA353 ''Cases in the Environment of Business: International Perspectives'']. SAGE, 2006. p. 353.</ref> Enron as a whole, however, was heavily overextended,<ref>Barboza, David. [https://www.nytimes.com/2002/03/09/business/enron-sought-to-raise-cash-two-years-ago.html?pagewanted=all&src=pm "Enron Sought To Raise Cash Two Years Ago"]. ''[[New York Times]]''. March 9, 2002.</ref> and in the summer of that year Mark and all the key executives at Enron International were asked to resign from Enron to reshape the company and get rid of asset businesses.<ref name=eichenwald362>[[Kurt Eichenwald|Eichenwald, Kurt]]. [https://books.google.com/books?id=ndr6gaslItoC&pg=PA362 ''Conspiracy of Fools: A True Story'']. Random House, 2005. pp. 362–364.</ref> Shortly thereafter a payment dispute with MSEB ensued, and Enron issued a stop-work order on the plant in June 2001.<ref>[http://www.enron-mail.com/email/kitchen-l/_americas/sec_media/Enron_Mentions_36.html "INDIA: Enron's Dabhol suffers legal setback in Indian row".] ''[[Reuters]]''. November 9, 2001.</ref><ref>[https://web.archive.org/web/20030508190934/http://www.hindu.com/2001/06/19/stories/05192512.htm "No way but to negotiate"]. ''[[The Hindu]]''. June 19, 2001.</ref> From 1996 until Enron's bankruptcy in 2001 the company tried to revive the project and revive interest in India's need for the power plant without success. By December 2001 the [[Enron scandal|Enron scandal and bankruptcy]] cut short any opportunity to revive the construction and complete the plant.<ref name=pretorius>Pretorius, Frederik; Chung-Hsu, Berry-Fong; McInnes, Arthur; Lejot, Paul; Arner, Douglas. [https://books.google.com/books?id=jAWNOeH36hUC&pg=PA321 ''Project Finance for Construction and Infrastructure: Principles and Case Studies'']. John Wiley & Sons, 2008. pp. 319–321.</ref> In 2005, an Indian government-run company,<ref>Salacuse, Jeswald W. [https://books.google.com/books?id=q_qqCAm0StsC&pg=PT400 ''The Three Laws of International Investment: National, Contractual, and International Frameworks for Foreign Capital'']. Oxford University Press, 2013. pp. 293–295.</ref> [[Ratnagiri Gas and Power]], was set up to finish construction on the Dabhol facility and operate the plant.<ref>Singh, Ramesh. [https://books.google.com/books?id=TWpmjwFabkQC&pg=SA10-PA37 ''Indian Economy'']. Tata McGraw-Hill, 2008. p. 11.5.</ref>