Difficulty: Easy
Correct Answer: Bechtel
Explanation:
Introduction / Context:
The Dabhol Power Project in Maharashtra, India, was one of the country's most high profile private power projects. It involved foreign investors and later faced legal and financial disputes. A comprehensive settlement was eventually reached, under which the foreign partners agreed to transfer their shares. This question asks you to identify the second American company, besides General Electric, that agreed to transfer its stake in the project.
Given Data / Assumptions:
- Dabhol Power Project had multiple international stakeholders.- Two American companies agreed to transfer their shares in a comprehensive settlement.- One of these companies was General Electric.- We need to identify the other company from the options provided.
Concept / Approach:
In the context of Dabhol, the key foreign partners were Enron, General Electric and Bechtel. During the settlement, General Electric and Bechtel, both American companies, agreed to divest their holdings. The options give names of major American energy and engineering firms, but only one of them matches the known partner alongside General Electric in this project context.
Step-by-Step Solution:
Step 1: Recall the list of companies frequently mentioned in connection with the Dabhol Power Project: Enron, General Electric and Bechtel.Step 2: Note that Enron itself is not one of the options here; the question specifically says one American company was General Electric.Step 3: Among the given options, identify which name is associated with large engineering and construction projects similar to Dabhol.Step 4: Bechtel is a well known American engineering and construction company that partnered in Dabhol, whereas ExxonMobil, Chevron and Unocal are primarily oil and gas exploration and refining companies.Step 5: Conclude that Bechtel is the second American company that agreed to transfer its share.
Verification / Alternative check:
To verify, you can recall news coverage around the settlement of the Dabhol controversy. Reports often mentioned that General Electric and Bechtel, as equity stakeholders and equipment suppliers, would transfer or sell their stakes as part of restructuring and the project moving to Indian control. In contrast, ExxonMobil, Chevron and Unocal are more often mentioned in oil exploration contexts and not directly tied to the Dabhol power plant saga.
Why Other Options Are Wrong:
ExxonMobil: A major integrated oil and gas company, but not known as a core equity partner in Dabhol.Chevron: Another major oil and gas company, yet not listed among the main stakeholders in the Dabhol Power Project settlement.Unocal: An energy company with global operations, but not the partner specified in the Dabhol settlement along with General Electric.
Common Pitfalls:
Because the question involves several large American corporations, candidates may guess based on name recognition rather than specific project association. It is easy to confuse energy majors with engineering firms. Remember that Dabhol was a power generation project requiring engineering, construction and power equipment, so a company like Bechtel fits naturally into that role. Associating each major company with its primary business domain helps avoid guesswork in such questions.
Final Answer:
Besides General Electric, the other American company that agreed to transfer its share in the Dabhol Power Project settlement was Bechtel.
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