Bob Menendez: “My amendment is premised on an unfortunate situation that has arisen in the state of Tamil Nadu, India, involving…”

“My amendment is premised on an unfortunate situation that has arisen in the state of Tamil Nadu, India, involving several American companies that are currently attempting to conduct business there. In seeking to provide additional electrical generating capacity, several years ago the Tamil Nadu government sought to induce foreign companies to design and build power plants there. Five American companies accepted this proposition and constructed four projects that generate approximately 800 megawatts of electricity in Tamil Nadu at a combined cost of about $1 billion. Each company entered into a long-term contract for the purchase of the electricity generated at these plants at an agreed-upon price. After getting these plants up and running, the Tamil Nadu government then began a systematic underpayment of the contract terms, sufficient to keep them running but providing no return on the initial investment. Technically, the projects are in a state of default; and, as far as we know, the Tamil Nadu government owes these American companies approximately $150 million under the terms of these contracts. Now, India has been a strategic ally and trading partner of the United States.”