In the present state of the power sector in India, Dabhol power at its present tariffs is likely to be unacceptable to the extent of its capacity. The speediest way out of this imbroglio may well be to treat DPC as a stranded project and negotiate the lowest cost to move the foreign investors out of the project. This may mean that governments might have to take a knock because of stranded costs, to the extent that the price payable might be more than what an Indian investor might be willing to pay. Tariffs can then be based on those lower capital costs and without the dollar denominations
