The ultimate aim of any modern corporate is growth with profit maximization. Growth is the first and foremost characteristic of nature and its products which include modern societies with all their industrial, agricultural and service sectors and above all the research organizations to cater to the needs of primary, secondary and tertiary sectors. Governed by the laws of the universe and nature, societies, markets and above all human life are in the constant churn of development in the realm of creativity and innovativeness.

The Dabhol Project, which has been in controversy for more than a decade, is in the process of revival and will start by mid-2006.A solution is in sight. It could come pretty soon... maybe in a few weeks. NTPC and GAIL are assisting the Dabhol Power Corporation (DPC) lenders at this stage. One is not talking of ownership at this juncture.The Dabhol power plant, which has been shut down since May 2001, is a ‘viable proposition,’ but will need ‘at least one year’ for generation of electric-ity from the date of takeover.

The year 1992 saw the initiation of India’s first foreign invest-ment funded power project — the 2184 MW Dabhol Project—a joint venture between the Government of Maharashtra and the now doomed Enron Power Corporation of US. It was India’s initial step towards liberalizing the electricity sector. After clearing the initial hurdles, however, the project landed in several controversies among which the tariff-related controversy lasted the longest and eventually led to the shutting down of the project in the year 2001, just two years after the Phase-I of the project had been up and running. No wonder then that the state of Maharashtra which was to be the sole beneficiary of the project has been facing power cuts and blackouts regu-larly over the last three years. In the year 2005, however, after many rounds of discussions and the subsequent clos-ing down of Enron the Government of India decided to take the matter under its control. The spark of the project has been reignited by the setting up of two Special Purpose Vehicles (SPVs).

The Analyst Magazine, Dabhols Project, Dabhol Power Corporation, Enron Power Project, Maharashtra State Electricity Board, MSEB, Dabhol Power Tariff, Special Purpose Vehicle, SPV, Gas Authority of India Ltd., GAIL,Project Management, Power Purchase Agreement, PPA.