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Dabhol Project to Hum Again!

News

The Rs 12,000-crore Dabhol power project will be split into separate power and LNG companies in an effort to revive the plant which was originally built by the now-bankrupt US energy firm Enron. 

Source:- ET

SNP Insight

Revival of Dabhol power project is seen as the big boost to NTPC, GAIL and other lenders as the project will start generating power approximately after 3 years of shut down. Although it remains to be seen whether the significant exposure of lenders, which once turned into bad loans can actually be compensated, but it directly depends upon whether this project becomes operational on 1st November, 2015 as envisaged by government. As of now there is a sigh of relief within stakeholders and the key lenders after this decision.

Source:- SNP Infra Research