MUMBAI: Bechtel Enterprises Holdings and GE Structures Finance has filed an arbitration action against the Indian government to recover their claim up to $600 million investments in the Dabhol Power Company in Maharashtra.
The claim includes close to $120 million each of their investments and their shares of the market value of the DPC specified in the power purchase agreement signed by the Maharashtra State Electricity Board and guaranteed by the Union government.
"We have attempted to resolve our legal and contractual claims but have been blocked at every turn", said Rick Smith, Executive Vice-President and Managing Director of Bechtel Enterprises. "Regretably this international arbitration demand must be made," he added.
"We will continue to pursue a full recovery of these investments through all available means," said Scott Bayman, president of GE India. "At the same time, we remain committed to helping to restart this much needed power generation facility," he added.
GE and Bechtel, the engineering and construction contractors and operational and maintenance contractors to the 740 mega watt power project with an investment of $3 billion. The project has been shut down after Enron pulled the plug for non-payment of its power payments by the state government.