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Word: maharashtra (lookup in dictionary) (lookup stats)
Dates: during 2000-2009
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...exception should be the Indian state of Maharashtra, which has electricity galore, thanks to a major power complex set up by Dabhol Power Co., a consortium of foreign companies led by Enron Corp. of Houston, Texas. But before Maharashtrans fire up their irrigation pumps or coiled-wire tea kettles, there's one small snag: the electricity is so expensive no one can afford it. "More than 600 small manufacturers have already closed down because of high electricity bills," says Ashwin Treasurer, owner of an electronic component factory. "What sort of development is this...

Author: /time Magazine | Title: Bright Lights, Big Bill | 2/26/2001 | See Source »

...most industrialized states, India twice negotiated and signed a deal in the 1990s with Enron to build a major power plant. It's now obvious the deal was far too sweet for the Americans, and India wasn't ready to distribute the juice rationally anyway. The result: consumers in Maharashtra like Treasurer can't afford the electricity bills anymore. (He's considering closing his 36-year-old business.) And since consumers aren't paying up, the state-owned electricity company has also been stiffing Enron since November. Last month, Maharashtra, which guaranteed the deal, defaulted on a $30 million bill...

Author: /time Magazine | Title: Bright Lights, Big Bill | 2/26/2001 | See Source »

...Enron deal was meant to be the solution?at $2.83 billion it was the largest single foreign investment in India ever?and an important litmus test for the country. Did the backward giant want to plug its gaping infrastructure gaps? The Maharashtra State Electricity Board agreed to buy all the power produced by Dabhol, and the pricing formula was shrewd: in the event of oil price increases or devaluation of the Indian rupee, the Electricity Board pays more. Well, oil has gone up and the rupee has gone down since Dabhol's 740 megawatt plant went operational two years...

Author: /time Magazine | Title: Bright Lights, Big Bill | 2/26/2001 | See Source »

...matter the rates, Maharashtra wasn't prepared for the electricity itself when it came down the wires. Because of institutionalized subsidies, only 10% of the power consumers in the state pay a market rate. Add in the higher cost of Dabhol's electricity, produced from gas rather than the cheap, local coal usually used by Indian power stations, and it was a formula for bankruptcy. "Since this power is so expensive," says Vinay Bansal, chairman of the Electricity Board, "the more we buy, the more we lose...

Author: /time Magazine | Title: Bright Lights, Big Bill | 2/26/2001 | See Source »

India can't afford to renege on its largest and highest profile foreign investment?and the Enron deal isn't even completed yet. The second phase of the project, with three times the capacity of the first, will be in operation later this year. Last week, Maharashtra set up a review committee to find a way to rework the deal but under the terms of the current agreement, India has to continue buying the electricity for the next 20 years?or pay $35 billion to get Enron out of the country. That is, if Enron doesn't already...

Author: /time Magazine | Title: Bright Lights, Big Bill | 2/26/2001 | See Source »

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