Finance ministry steps in to rescue Dabhol power project.

The finance ministry has stepped in to rescue the Dabhol Power Project, which is struggling to collect Rs. 400 crore dues from Maharashtra's power utility. The ministry says it would deduct the amount from central funds to be transferred to the state if the dispute is not resolved amicably.

The project, which was built by Enron Corp, has been in trouble since last year, when dwindling gas supply from Reliance Industries' KG-D6 block forced it to shut down.

ET