Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
1
Background
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Status of Indian Electricity Sector
In October 1991
Energy sector was opened for private investors to build and operate
power generation plants without restriction on foreign ownership
Power sector Critical to Indias economic development
Growing population
Mass urban migration
Industrialization
National power demand
Growth at an annual rate of almost 8%
Total installed capacity in the early 1990s 80,000MW
Projected demand by 2005 140,000MW
3
Institutional Framework of Indian Electricity
Sector
Two-tier system of the Indian power sector
Sharing of responsibility
Federal centre
Power generation
States
State Electricity Board (SEB) involved in the generation,
transmission and distribution of electricity
70% of national power was distributed by SEBs
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Power Generation
5
SEBs
Power shortages
SEBs are prone to subsidize the tariff of agricultural
consumers
Industrial consumers bribed state officials for lower power
bills
Losses accumulating at upto US$ 2billion annually, the
SEBs ability to invest in new capacity was severely limited
6
Response of Government
7
Enron
8
Enron
9
Enron
10
Marks Vision
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Dabhol Power Company
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Dabhol Project - Development
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Dabhol Project - Development
14
Project Structure
15
Not Economically Viable World Bank
Enron and the Central Government sought financing from the World
Bank for Dabhol
World Bank turned down the loan application
Project would produce too much power at too high cost for Maharashtra
Compel MSEB to replace cheaper coal fired power output with a source that
was as much as five times more costly
MSEB is contracted to buy minimum quantity, even if the plants output was
unwanted
Limited transmission network capacity between Indias five regional grids
Selling power to other states was scarcely viable
Dabhol plant was planned as a baseload power station when Maharashtra
faced electricity shortages only during peak hours
Use of LNG as a fuel was dubious
16
Central Electricity Authority
17
Sealing the Deal
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Power Purchase Contract
19
Power Purchase Contract
20
Phase I Financing
21
Throw Enron into the Arabian Sea
In March 1995
Prior to the commencement of construction of Phase I
New coalition of the nationalist Bharatiya Janata Party (.BJP.) and
the Hindu nationalist Shiv Sena replaced the Congress state
government that had been responsible for entering into the Dabhol
contract
Munde committee
Statement government declared the Dabhol project
cancelled in August 1995
Halt to construction work of Phase 1
State government would be open to renegotiation if Enron took the
appropriate initiative
22
Response from Enron
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Phase II Financing
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Godbole Committee
25
Cash Crises
Pilferage
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Cash Crises
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Cash Crises
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Claims
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