Dabhol placed in receivership


The Dabhol power plant has been idle since June 2001

MUMBAI, India (CNN) -- Dabhol Power Company, Enron's Indian unit which built a now-mothballed power plant in the western state of Maharashtra state, has been placed in court receivership.

Indian media reported the Bombay High Court this week accepted a petition from the Industrial Development Bank of India (IDBI), which sought the appointment of a receiver to DPC.

The $3 billion 2184-megawatt Dabhol plant has not operated since last June. It was closed because of a dispute with its sole customer, the Maharashtra State Electricity Board (MSEB), over $240 million in unpaid bills and the cost of power.

Enron, the U.S. energy trader which collapsed late last year, held 65 percent of the Dabhol project.

Other stakeholders are General Electric Co and construction firm Bechtel Corp, each with 10 percent, and MSEB, with the remaining 15 percent.

Second phase halted

The Dabhol power plant, which is about 250 kilometers (155 miles) south of Mumbai, was almost complete when construction on the 1444-megawatt second phase was halted after the MSEB fell behind with its payments.

The 740-megawatt first phase began operating in May 1999.

Before it went sour, the Dabhol plant was touted as India's biggest project involving overseas investors.

The High Court order this week restrains the DPC from disposing of assets or being part of any proceedings outside India.