Enron - Doing Business in India

Enron in India In moving into India, Enron faced a variety of problems which hindered its ability to conduct business. Some of these factors were environmental or cultural factors that any foreign investor in India would face, and other factors existed that were particular to the Dubhol project. When considering doing business in India, Enron should consider that at the time India was emerging from a command economy and only recently realizing the huge benefits …

…resells the power. So, regardless of the fluctuations in the exchange rate, or in the need for electricity by the MSEB, the project would always pull in a fixed minimum amount in dollars. In this way, DPC insulated itself from the risks associated with currency fluctuations and the risks associated with demand. The terms of the agreement also protected DPC from the risk of increases in the price of fuel or other costs of operation.