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 HOUSTON, Dec. 8 /PRNewswire/ -- Enron Corp. (NYSE: ENE) announced today that the Dabhol Power Company, a joint venture of Enron Development Corp.; Bechtel Enterprises, Inc.; and GE Capital, has signed a power purchase agreement with the Maharashtra State Electricity Board (MSEB) in India. The agreement provides for power sales from a new 2,015 megawatt gas-fired combined cycle power project near Dabhol, India, about 100 miles south of Bombay. The project is to be developed in two phases beginning in 1994.
 Enron Development, the managing partner, will develop and operate the plant; Bechtel will design and construct the plant; and General Electric will supply the equipment for the plant. "We are delighted to bring this world class integrated natural gas project one step closer to reality," said Kenneth L. Lay, chairman and CEO of Enron Corp. "The project will be the first of its kind in many respects. It is the first large scale private electric generating facility that the Indian government has approved for development by foreign investment; it represents the first development and use of liquefied natural gas (LNG) facilities in India; and the power station will be the first in India to utilize state-of-the art, high efficiency power generation technology. As an integrated gas and power project, the facilities will contribute significantly to the development and expansion of both the natural gas and power sector in India."
 The project has received several state and Central Government permissions, including the approval of the Central Electricity Authority and the Foreign Investment Promotion Board. The power purchase agreement was negotiated with the MSEB, which will purchase all of the power produced at the plant. The power purchase agreement has an initial term of 20 years.
 The project will be constructed in two phases. The first phase will be 695 megawatts and construction is scheduled to begin in 1994. It will be fueled by distillate fuel oil and is expected to be in commercial operation in early 1997. The second phase will add 1,320 megawatts of power and will be fueled by LNG. Enron Development is currently in negotiation to acquire a supply of LNG to fuel the project. Construction on the second phase is dependent upon LNG fuel supply but is expected to begin in 1995.
 Financing for the project is in progress. It will be project financed on a non-recourse basis to Dabhol Power Company owners. The debt is expected to be underwritten by multilateral agencies, major international banks and Indian financial institutions. "I am impressed with the professional way the Government of India, the Government of Maharashtra and particularly the MSEB have handled the Enron effort," said Rebecca P. Mark, chairman and CEO of Enron Development Corp. "Active reform in dealing with foreign private companies is obvious from the way the Dabhol venture has been supported. We look forward to rapid progress as we continue toward financing, construction and the delivery of power."
 Enron Corp., America's leading natural gas company with approximately US$11 billion in assets, operates one of the largest natural gas transmission systems in the world totaling 44,000 miles on two continents; is the largest purchaser and marketer of long-term natural gas supplies in North America; markets natural gas liquids, MTBE and methanol worldwide; owns 80 percent of Enron Oil & Gas Company, one of the largest independent (non-integrated) natural gas exploration and production companies in the United States; and is one of the largest independent developers and producers of electricity in the world, with extensive experience in combined heat and power installations and operations. Enron Corp. is traded under the ticker symbol, "ENE."
 General Electric Company (NYSE: GE) is a diversified manufacturing, technology and services company with operations worldwide. GE Capital, a wholly-owned subsidiary of GE, is a diversified financial services company headquartered in Stamford, Conn. GE Capital's activities include specialty insurance, consumer services, specialized financing, equipment management and mid-marketing financing.
 Bechtel, based in San Francisco, is one of the world's leading engineering, construction, development, management and environmental firms. During 1992, the firm's 31,000 employees were working on 1,400 projects for a total of 750 customers. Founded in 1898, the privately held company recorded $7.8 billion in revenues in 1992, placing it at the top of Engineering News-Record's list of the top 400 contractors. Bechtel has been at the center of electric power and cogeneration development since the 1940's, having built more than 315 fossil-fired plants with a combined capacity of more than 100,000 megawatts. Within the last decade, Bechtel also has completed more than 15 private power projects. In addition, the company has had prime responsibility for the engineering and construction of 40 percent of the nuclear power units presently operating in the U.S.
 -0- 12/8/93
 /CONTACT: Diane Bazelides of Enron Corp., 713-853-6285/

CO: Enron Corp.; GE Capital; Bechtel Enterprises, Inc. ST: Texas, Connecticut, California IN: UTI SU: JNV

SP -- NY017 -- 1615 12/08/93 08:54 EST
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Publication:PR Newswire
Date:Dec 8, 1993

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