The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Playing power games

Richard Celeste

Doing business with politicians is a wretched business, as independent power producers in the Indian subcontinent have learnt lately.

Last December the state government of Maharashtra declared that power purchased from the Dabhol Power Company (DPC), the Indian subsidiary of Texas-based Enron, the largest foreign investor in the country, was too expensive and announced a review of the second phase of the project. Many dismissed it as a political ploy by the newly-elected Congress coalition to embarrass its predecessor, now the central government, which had cancelled and then renegotiated the Dabhol contract six years ago.

But by January, the Maharashtra State Electricity Board (MSEB), the state's distribution company and the sole buyer of Dabhol's power, had not paid for power it had bought in November. A partial bailout by the state government allowed MSEB to part-pay its total dues of Rs3.07

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree