More Power To India

Why Enron renegotiated its deal--on Maharashtra's terms

Did Enron Corp. blink? After months of bitter exchanges, the natural-gas and pipeline company and Indian negotiators agreed on Jan. 8 to revive the country's controversial Dabhol power project. Last summer, Maharashtra state's new chief minister, Manohar Joshi--who rode to power on a pledge to "drive Enron into the sea"--cancelled the project, citing padded costs and too high electricity rates.

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