Dabhol Power Station is located near Anjanwel village in Ratnagiri district in Maharashtra, India, about 160 kilometres (99 mi) south of Mumbai.

[1] At the start of its construction in 1992, the Dabhol power station project was, at $3 billion, the biggest foreign investment in India.

The project was mired in controversy from its inception, which would escalate so dramatically that it affected politics and foreign policy at the national level.

[2] The Dabhol Power Station was the largest foreign investment project in India at the time.

The controversy helped a Bhartiya Janata Party-Shiv Sena coalition win the 1995 Maharashtra Legislative Assembly election on a campaign pledge to "push Enron into the Arabian Sea."

In January 2001, the Maharashtra state government stopped paying the company due to the high cost of power charged by them.

Subsequently, high-level US Government officials including Colin Powell, Dick Cheney, Christina B.Rocca and Alan Larson tried to convince the Indian authorities to pay Enron and allow them to continue its operations at Dabhol.

[9] As of 2016, the power plant continues to operate at a loss, selling energy to the MSEDCL and Indian Railways at a highly inflated rate.