Dabhol Power Station
| Dabhol Power Station | |
|---|---|
 Location of Dabhol Power Station
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| Country | India |
| Location | Anjanwel, Ratnagiri district, Maharashtra |
| Coordinates | 17°33′35″N 73°9′59″E / 17.55972°N 73.16639°ECoordinates: 17°33′35″N 73°9′59″E / 17.55972°N 73.16639°E |
| Status | Operational |
| Commission date | 2000 |
| Owner(s) | Ratnagiri Gas and Power |
| Thermal power station | |
| Primary fuel | LNG |
Also see Dabhol Power Company and Enron Scandal
Dabhol Power Station is located near Anjanwel village in Ratnagiri district in Maharashtra, India, about 160 kilometres (99 mi) south of Mumbai. The power station was a built by the Dabhol Power Company (DPC), which was a joint venture of Enron, General Electric, Bechtel and Maharashtra Power Development Corporation. At the start of its construction in 1992, the Dabhol power station was the biggest foreign investment in India. The plant was mired in controversies of corruption and malpractices involving Enron and people at the highest political levels of the Indian and the United States (Clinton and Bush Administration) governments.
Construction of the Dabhol Power Station was planned to be completed in two phases. The first phase was a 740 MW unit to use naphtha as the fuel. Construction started in 1992 and finally completed in May 1999. The next phase was 1700 MW of units using liquefied natural gas (LNG) as fuel. At its height, the construction of the Dabhol power station employed 15,000 people.
The power project ran into trouble due to the power purchase agreement between the DPC and the state's power utility, Maharashtra State Electricity Board (MSEB). The agreement negotiation lacked transparency, and details had not been made public. In 2000, MSEB was paying DPC Rs. 4.67/kwh while the tariff that MSEB charged its customers was Rs. 1.89/kwh.
Due to political controversies related to the high pricing of power from the station and allegations of corruption, the construction and operation of the Dabhol power station was interrupted on several occasions even after it started operation in May 1999. In January 2001, the Maharashtra state government stopped paying the company due to the high cost of power charged by them. Subsequently, high-level US Government officials including Colin Powell, Dick Cheney, Christina B.Rocca and Alan Larson tried to convince the Indian authorities to pay Enron and allow them to continue its operations at Dabhol. However, in November 2001, due to the Enron bankruptcy and disputes between Enron's creditors and the Government of Maharashtra (GoM). The power plant was finally rehabilitated and taken over by Ratnagiri Gas and Power (RGPPL), which successfully revived and operates the plant.
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