The Hindu : DPC: Compensation for GE, Bechtel

Online edition of India's National Newspaper
Wednesday, Sep 10, 2003

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DPC: Compensation for GE, Bechtel

By Our Special Correspondent

MUMBAI SEPT. 9. An independent arbitration panel has ruled that GE and Bechtel's interests in the Dabhol Power Company (DPC) in Maharashtra were improperly expropriated by the Central Government.

The Tribunal ordered a binding award of $28.57 million each to Bechtel and GE for claims they brought against their political risk insurer, Overseas Private Investment Corporation (OPIC), an agency of the U.S. Government.

The Tribunal was chaired by the former U.S. District Court Judge, Charles Renfrew, and included David Kay of Gardner Carton & Douglas, and Robert Layton of Layton Law Office L.L.P.

The companies reported that under the terms of their insurance contracts, this action would likely to trigger a U.S. Government claim against the Union Government for recovery of the company's investments in DPC under an investment treaty between both Governments.

"We are pleased that this distinguished panel decided in our favour and concluded that the actions of the State of Maharashtra and the national Government of India violated international law and that they took our property without compensation," said Rick Smith, Executive Vice President of Bechtel Enterprises.

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