5. What were the main criticisms leveled by different interest groups against Enron and the Dabhol Power Project? Discuss the validity of these concerns, particularly given India's priorities and issues as an economy in transition. There are many key criticisms leveled by different interest groups against Enron and the Dabhol Power project: Criticism of the federal guarantee A World Bank report called the guarantee agreement into question. because, according to him, it was only a loan made by the federal government on behalf of the MSEB if it failed to cover its payments to Enron. Criticisms of the original deal Fueled by backlash against the Dabhol project, the opposition party won in Maharashtra in 1995 over the plan to dump Enron in the Arabian Sea. The new government quickly appointed a group of ministers, known as the Munde Committee, to review the Dabhol project. The Munde Committee report criticized both the process by which the project was developed and the terms of the agreement. He found that the initial MoU was rushed and unilaterally condemned the lack of competitive bids and the lack of transparency in the process. criticized subsequent changes to the project design as only addressing Enron's concerns and found that Enron had received undue favors and concessions. Criticisms of the Revised Agreement Critics of the revised agreement charged that the revisions were very minor and failed to address the fundamental problems of the project, and in fact exacerbated those problems. The revised agreement expanded Phase I of the project from 695 megawatts to 740 megawatts and committed the state to both Phase I and the 1,320 megawatt portion of Phase II of the project. While Maharashtra St...... middle of paper ......ck calls for tenders for its main equipment supplier, General Electric and its construction partner, Bechtel. Some critics suggest that foreign equipment suppliers were favored over Indian suppliers. However, Enron counters that it allegedly awarded more than 60 contracts worth more than $100 (3.6 billion rupees) to Indian companies. II from its gas processing plant in Qatar. Once completed, this plant will be owned by a joint venture between Enron Oil & Gas and the Government of Qatar. Enron vigorously denied this. Critics suggested that Enron would make excessive profits by setting transfer prices and charging arbitrary prices for fuel. However, from Enron's perspective, taking responsibility for fuel supply was a way to reduce risk..