June 2001: Enron Shuts Down Expensive Indian Plant After Afghan Pipeline Fails to Materialize

Enron’s power plant in Dabhol, India, is shut down. The failure of the $3 billion plant, Enron’s largest investment, contributes to Enron’s bankruptcy in December. Earlier in the year, India stopped paying its bill for the energy from the plant, because energy from the plant cost three times the usual rates. [New York Times, 3/20/2001] Enron had hoped to feed the plant with cheap Central Asian gas, but this hope was dashed when a gas pipeline through Afghanistan was not completed. The larger part of the plant is still only 90 percent complete when construction stops around this time. [New York Times, 3/20/2001] Enron executives meet with Commerce Secretary Donald L. Evans about its troubled Dabhol power plant during this year [New York Times, 2/21/2002] , and Vice President Cheney lobbies the leader of India’s main opposition party about the plant this month. [New York Times, 2/21/2002]