The Dabhol Power Company (now called RGPPL - Ratnagiri Gas and Power Private Limited) was a company based in Maharashtra, India, formed in 1992 to manage and operate the controversial Dabhol Power Plant.The Dabhol plant was built through the combined effort of Enron as the majority share holder, and GE, and Bechtel as minority share holders. GE provided the generating turbines to Dabhol, Bechtel constructed the physical plant, and Enron was charged with managing the project through Enron International. From 1992 to 2001, the construction and operation of the plant was mired in controversies related to corruption in Enron and at the highest political levels in India and the United States (Clinton administration and Bush administration). The price that the state electricity board would have to pay for electricity produced by DPC (8 Rs/unit) was more than 20 times what it paid for hydroelectricity (Rs. 0.35/unit).
In 1998, MSEB purchased half of Enron's equity stake. In May 1999, the power plant began producing energy. In January 2001 the state of Maharashtra stopped paying DPC and sought to cancel the purchase agreement. In May 2001, the power plant ran into further trouble due to Enron scandal leading to the bankruptcy of Enron and had to stop production.
In 2005, it was taken over and revived by converting it into the RGPPL (Ratnagiri Gas and Power Private Limited), a company owned by the Government of India.
Starting in the mid-1990s, Unocal and its partners planned to build a 1,000 mile gas pipeline from Turkmenistan to Multan, in Pakistan at a cost of about $2 billion. Also considered was a route from Iran to Multan which was seen as feasible due to Iran's huge oil and gas reserves. However, In 1996 when the Sanctions against Iran were imposed, the FBI blocked the plan, and it was forcibly cancelled. A proposed 400 mile extension from Multan to New Delhi would bring some of the gas into India's network of gas pipelines at a cost of $600 million.
A sea route from Gwadar, Pakistan, to Dabhol, India, was never considered despite both locations being coastal towns.
In 1992, Enron approached the government of Maharashtra with the idea of setting up a 2,184 Megawatts LNG powered plant at Dabhol, Ratnagiri. LNG for the project would be imported from Qatar through a 20 year contract with Enron, and the electricity produced would be purchased by the Government of Maharashtra for 20years.
However, World Bank found issues with the feasibility of the project and hence refused to give a loan for the same. Instead the project was financed by Enron, Bechtel, GE and five major lenders, one of which was located in India:
The plant was to be constructed in two phases. In March 1995, the ruling Congress Party in Maharashtra lost to a nationalist coalition that had campaigned on an anti-foreign investment platform. In May, hundreds of protesting villagers swarmed over the site to protest the displacement of people that would take place, and a riot broke out. Human Rights Watch and Amnesty International eventually charged the security forces guarding Dabhol for Enron with human-rights abuses; Human Rights Watch blamed Enron for being complicit. On August 3, the Maharashtra state government ordered the project to be halted because of "lack of transparency, alleged padded costs, and environmental hazards." Construction ground to a halt. By then, Enron had invested about $300 million into the project.
Phase one was set to burn naphtha, a fuel similar to kerosene and gasoline. Phase one would produce 740 megawatts and help stabilize the local transmission grid. The power plant's phase one project was started in 1992 and finally completed two years behind schedule.
Phase two would burn liquefied natural gas (LNG). The LNG infrastructure associated with the LNG Terminal at Dabhol was going to cost around $1 billion.
In 1996 when India's Congress Party was no longer in power, the Indian government assessed the project as being excessively expensive and refused to pay for the plant and stopped construction. The Maharashtra State Electricity Board (MSEB), the local state run utility, 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. From 1996 until Enron's bankruptcy in 2001 the company tried to revive the project and spark interest in India's need for the power plant without success. The project was widely criticized for excess costs and deemed a white elephant. Socialist groups cited the project as an example of corporate profiteering over public good. Over the next year Enron reviewed its options. On February 23, 1996, the then government of Maharashtra and Enron announced a new agreement. Enron cut the price of the power by over 20 percent, cut total capital costs from $2.8 billion to $2.5 billion, and increased Dabhol's output from 2,015 megawatts to 2,184 megawatts. Both parties committed formally to develop the second phase. The first phase went online May 1999, almost two years behind schedule, and construction was started on phase two. Costs would now ultimately climb to $3 billion. Then everything came to halt. The MSEB refused to pay for all the power, and it became clear that getting the government to honor the guarantees would not be an easy task. Although Maharashtra still suffers from blackouts, it says it does not need and cannot afford Dabhol's power[ citation needed ]. India's energy sector still loses roughly $5 billion a year[ citation needed ]. This plant was taken over by Ratnagiri Gas and Power Private limited in July 2005.
The power plant Phase I which was renamed Ratnagiri Gas and Power Pvt Ltd (RGPPL) started operation in May 2006, after a hiatus of over 5 years. However, the Dabhol plant ran into further problems, with RGPPL shutting down the plant on 4 July 2006 due to a lack of naphtha supply. The Qatar based company RasGas Company Ltd. started supplying LNG to the plant in April 2007.
The Dabhol Power plant consists of 3 blocks, each consisting of two GE make frame 9 gas turbines and one GE steam turbine. Block 2 commissioning work and Gas turbine 2A trial runs started on 25 April 2007. The Dabhol Power Plant Project was again made operational in April 2009 with 900 MW RLNG fired running capacity but problems continued due to non-availability of operational insurance. Decisions tend to be largely dependent upon political developments in the country as well as performance of newly repaired rotors. As of 2016, the company continues to operate at a colossal loss, selling expensive electricity to either the state owned MSEDCL or India railways for survival.
In September 2015, the company had a total debt of nearly Rs. 10,500 crore. In a bid to try and revive the loss making plant, the Company owning the power plant RGPPL was split into two separate Power (RGPPL) and LNG entities (Konkan LNG Private Limited (KLPL)), one to manage the power plant and the other to try and manage the import of LNG.
Enron Corporation was an American energy, commodities, and services company based in Houston, Texas. It was founded by Kenneth Lay in 1985 as a merger between Lay's Houston Natural Gas and InterNorth, both relatively small regional companies. Before its bankruptcy on December 3, 2001, Enron employed approximately 29,000 staff and was a major electricity, natural gas, communications, and pulp and paper company, with claimed revenues of nearly $101 billion during 2000. Fortune named Enron "America's Most Innovative Company" for six consecutive years.
Bechtel Corporation is an American engineering, procurement, construction, and project management company founded in San Francisco, California, and headquartered in Reston, Virginia. It is the largest construction company in the United States.
Maharashtra State Electricity Board is a state government electricity regulation board operating within the state of Maharashtra in India. The MSEB was formed on 20 June 1960 under Section 5 of the Electricity (Supply) Act, 1948. In 1998 it was the second largest electricity generating utility in India after National Thermal Power Corporation.
Enron International (EI) was Enron's wholesale asset development and asset management business. Its primary focus was developing and building natural gas power plants outside North America. Enron Engineering and Construction Company (EECC) was a wholly owned subsidiary of Enron International, and built almost all of Enron International's power plants. Unlike other business units of Enron, Enron International had a strong cash flow on bankruptcy filing. Enron International consisted of all of Enron's foreign power projects including ones in Europe.
Rebecca P. Mark-Jusbasche, known during her international business career as Rebecca Mark, is best known as the former head of Enron International, a subsidiary of Enron. She was also CEO of Azurix Corp., a publicly traded water services company originally developed by Enron International. Mark was promoted to Vice Chairman of Enron in 1998 and was a member of its board of directors. She resigned from Enron in August 2000.
GAIL (India) Limited is a government corporation responsible for natural gas processing and distribution in India headquartered in New Delhi, India. It is under the ownership of Ministry of Petroleum and Natural Gas, Government of India. It has the following business segments: natural gas, liquid hydrocarbon, liquefied petroleum gas transmission, petrochemical, city gas distribution, exploration and production, GAILTEL and electricity generation. GAIL was conferred with the Maharatna status on 1 Feb 2013, by the Government of India. Only eight other Public Sector Enterprises (PSEs) enjoy this coveted status amongst all central CPSEs. GAIL was listed in the 131st position among India's most trusted brands according to the Brand Trust Report 2014, a study conducted by the Trust Research Advisory.
Oman LNG is a LNG plant in Qalhat near Sur, Oman. The company was established by the Royal decree of Sultan Qaboos of Oman in 1994. The construction was launched in November 1996, and the plant was commissioned in September 2000. Oman LNG operates three LNG trains with a total capacity of 10.4 million tonnes per year. The company's production facilities are located on the coast at Qalhat near Sur in the South Sharqiyah Governorate, Oman.
The Mahanirmiti or Mahagenco formerly known as MSEB is the major power generating company in the state of Maharashtra, Western India and a wholly owned subsidiary of Maharashtra State Electricity Board. With a total generation of 14400 MW, it is the second largest power producing company in India. The power generated by Mahagenco is supplied to the State of Maharashtra. It was a part of Maharashtra State Electricity Board (MSEB) until 6 June 2005.
Sutton Bridge Power Station is an 819 MW gas-fired power station in Sutton Bridge in the south-east of Lincolnshire in South Holland, England. It is situated on Centenary Way close to the River Nene. It is a major landmark on the Lincolnshire and Norfolk border and on clear days with its bright red lights it can be easily seen as far away as Hunstanton.
Dabhol, also known as Dabul, is a small seaport town in the Ratnagiri district of Maharashtra in India. It is located on the northern and southern sides of the Vashishthi river that later flows by Chiplun town. The Dabhol LNG power plant that had been set up by Enron is located on the southern side of Dabhol, between the villages of Veldur and Ranavi.
The Shepherds Flat Wind Farm is an 845 megawatt (MW) wind farm in the eastern part of U.S. state of Oregon, near Arlington, in both Gilliam and Morrow counties. Groundbreaking came in 2009, and it officially opened in September 2012. The wind farm was built by Caithness Energy using General Electric GE2.5XL 2.5 MW wind turbines, and it supplies electricity to Southern California Edison. The wind farm is estimated to have an economic impact of $16 million annually for Oregon. It is one of the largest land-based wind farms in the world.
The Wilton power station refers to a series of coal, oil, gas and biomass fired CHP power stations which provide electricity and heat for the Wilton International Complex, with excess electricity being sold to the National Grid. It is located on the Wilton site in Redcar and Cleveland, south of the town of Middlesbrough in North East England. The station has provided for the site since opening in 1952, when it was operated by ICI. The station is currently owned and operated by SembCorp Industries.
Mahavitaran or Mahadiscom or MSEDCL is a wholly owned subsidiary of the Maharashtra State Electricity Board. It is the largest electricity distribution utility in India. MSEDCL distributes electricity to the entire state of Maharashtra except some parts of Mumbai city where Brihanmumbai Electric Supply and Transport, Tata Power and Adani Electricity Mumbai Limited are electricity distributors.
As of June 2013, the total capacity of the electricity sector in Iraq is about 10,000 megawatt (MW). In 2006, the average peak electricity supply was 4,280 MW falling short of demand averaged 8,180 MW by about 3,950 MW. According to the United States Department of Energy officials, demand for electricity has been stimulated by a growing economy and a surge in consumer purchases of appliances and electronics. In addition, electricity is subsidized in Iraq, which leads to increased demand.
Koradi Thermal Power Station (KTPS) is located at Koradi near Nagpur, Maharashtra. The power plant is one of the four major power plants in Vidarbha – a power surplus region of India. The power station began operations in 1974 and is one of the nine active power stations operated by Maharashtra State Power Generation Company Limited (Prajot), a subsidiary of Government of Maharashtra owned Maharashtra State Electricity Board (MSEB). The plant operates 8 units and has a total power generation capacity of 1700 MW. A proposed 440 kilovolt high power transmission line from Koradi to Bhusawal would join Nagpur with Mumbai. KTPS campus also contains training institute of MahaGenco for middle and senior level engineers, technicians and other staff.
Sources include: Dow Jones (DJ), New York Times (NYT), Wall Street Journal (WSJ), and the Washington Post (WP).
GE Power is an American energy technology company, owned by General Electric. In 2018, General Electric power plants produced one-third of the world's electricity.
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 International, General Electric, Bechtel and Maharashtra Power Development Corporation. At the start of its construction in 1992, the Dabhol power station project was, at $3 billion, 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 governments.
Ratnagiri Gas and Power Private Limited (RGPPL) is a joint venture of NTPC Limited, GAIL, Government of Maharashtra. The company was established to take over and revive the assets of the defunct Dabhol Power Company. RGPPL owns one of India's largest and only LNG based power plants and the LNG regasification terminal at Dabhol.
Vallur Thermal Power Station is a power plant located in Athipattu Pudunagar, Vallur in Thiruvallur district, North Chennai, India. The power plant is operated by NTPC Tamil Nadu Energy Company Limited, a joint venture between NTPC Limited and TANGEDCO and has three units with 500 MW each.