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COURT RULES IN FAVOR OF DABHOL POWER COMPANY, DABHOL CONSTRUCTION TO RESUME
FOR IMMEDIATE RELEASE: Monday, December 2, 1996
Houston -- ENRON announced that it is very pleased with the Bombay High Court's decision today to dismiss the only remaining lawsuit filed against Dabhol Power Company.
"This is the last critical step in getting the Dabhol Power Project back on track for completion by December 1998," said Kenneth L. Lay, ENRON Chairman and CEO. "Preliminary site preparation activities are underway and construction should be fully activated within a week after execution of all financing documents," Lay said. Financing documents are expected to be executed shortly, according to Lay.
The court ruled that all allegations brought against Dabhol Power Company, the Government of Maharashtra and the Union of India by the Centre of Indian Trade Unions are without merit. Additionally, as a result of this ruling, all approvals and clearances granted to the Dabhol project remain legally binding.
As earlier agreed by ENRON and the Government of Maharashtra, ENRON is now implementing the steps necessary to cease arbitration against the Government of Maharashtra.
"This project serves as the cornerstone of ENRON'S activities in India," Lay said. "As we pursue additional projects in the country, we look forward to a long-term relationship with both the government and the people of India."
The Dabhol project is a joint venture of ENRON, which owns 80 percent of the project, and General Electric Capital Corporation and Bechtel Enterprises, Inc., which own 10 percent each.
ENRON, one of the world's largest integrated natural gas and electricity companies with approximately $15 billion in assets, operates one of the largest natural gas transmission systems in the world; is the largest purchaser and marketer of natural gas and the largest non-regulated marketer of electricity in North America; markets natural gas liquids worldwide; manages the largest portfolio of fixed-price natural gas risk management contracts in the world; is among the leading entities arranging new capital to the energy industry; owns 58 percent of Enron Oil & Gas Company, one of the largest independent (non-integrated) exploration and production companies in the United States; owns 59 percent of Enron Global Power & Pipelines L.L.C., which is owner and manager of operating power plants and natural gas pipelines around the world; and is one of the largest independent developers and producers of electricity in the world. ENRON is traded under the ticker symbol, "ENE."
Bechtel Enterprises is the development, financing and ownership affiliate of Bechtel Group, Inc., one of the world's premier engineering, construction and project management companies. Since 1990, it has arranged more than $10.2 billion in project financings worldwide and has ownership interests in 23 power projects in construction or operation, with a total generating capacity of 5,778 megawatts. The Bechtel organization has been at the center of electric power and cogeneration development since the 1940s, having participated in the building of more than 450 power plants worldwide with an aggregate generating capacity of more than 200,000 megawatts.
General Electric Capital Corporation is a wholly owned subsidiary of General Electric Capital Services, Inc., which, with assets of over US$185 billion, is a global, diversified financial services company with 26 specialized businesses. A wholly-owned subsidiary of General Electric Company, General Electric Capital Services, based in Stamford, CT., provides equipment management, mid-market and specialized financing, specialty insurance and a variety of consumer services, such as car leasing, home mortgages and credit cards, to businesses and individuals around the world. GE is a diversified manufacturing, technology and services company with operations worldwide.
For additional information please contact:
Kelly Kimberly
(713) 853-5377
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