"Generation Gaps"

The Economist, January 13, 2001.

Synopsis:

The case in chapter 3 describes Enron's investment in India, focusing on the Dabhol power project in the Indian state of Maharashtra. As illustrated in the case, the project by a Houston-based power company had been a subject of controversy since its conception nearly a decade ago.

This article provides an update of the project, focusing on the controversial issue of the current cost of Dabhol's power. Probably the bigger problem may be the expected cost increase in the future, which would be related to the level of capacity of Dabhol's output and the switch from naphtha to liquefied natural gas as its fuel. This article also discusses some potential approaches the parties involved in the Dabhol power project can take to avoid sparking more controversy.

Full-text Article: http://www.economist.com/displayStory.cfm?Story_ID=473117&CFID=467262&CFTOKEN=6567573

Case connection:

"Enron International in India" in Chapter 3 (pp.110-113).