Business Negotiation Skills Research Paper Example | Topics and Well Written Essays - 1500 words

Business Negotiation Skills - Research Paper Example This essay stresses that the opposition to the project had begun with the filing of suit against Enron in the Indian High Court. Opposition political powers at the state made this a huge issue in the approaching Maharashtra assembly elections and with the change of government; the contract was annulled by the MSEB causing daily loss of US$250,000 to Enron and its partners. The contract was further renegotiated at the behest of Enron with the new state government. After agreeing to new terms and conditions stipulated by the MSEB, and the 1st phase was completed and second phase of producing electricity started but the MSEB failed in paying back the agreed tariff rate. By the same time, Enron also filed for bankruptcy. As the report declares Enron signed a contract with the Maharashtra Sate Electricity Board (MSEB) by putting its and its partner companies’ stakes in Dabhol Power Project. The negotiations for the project began primarily with the two stakeholders from the Indian government, one was the Indian state of Maharashtra and the other was MSEB. The project proposal of making a 2015 megawatt power plant with the proposed investment of US$3 billion was cleared initially. On its side, Enron was not the sole company; it had made and entered into joint initiative with the investment of 10% each by General Electric and Bechtel. It required Liquefied Natural Gas to power the plant, which it arranged from another of its joint venture in Qatar, 1200 miles away from the plant location in Dabhol.