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Owners Make Quick Exit

Failed JV demonstrates risks of transition economies...

The Indian power plant previously at the centre of a political risk claim has been put up for sale by its owners at a considerable loss.

Enron, who holds 65% of the Dabhol power plant, as well as General Electric and Bechtel, which hold 10% each, are to sell their total 85% stake for $380m in a bid for a quick exit.

India's largest-ever foreign direct investment failed when payments by a local utility that had run up debt of $240m came to a standstill.

Enron then lodged a political risk claim against the Indian government and a group of banks and engineering firms followed suit late last year.

Companies that sued the Indian government included Bank of America, Citigroup, Credit Suisse, General Electric and Bechtel.