Corporate Collapse - The demise of Enron Essay Example | Topics and Well Written Essays - 750 words

Corporate Collapse - The demise of Enron - Essay ExampleThe duration of the exteriorize that was expected by the confederation was 10 years and the company expected that it will generate wide amount of profit from this project. But the reality is opposite to what Enron forecasted and it had to bear huge loss in cost of finance and social image (Ahmed, 2012). The project was engageed as the largest direct foreign investment project in Indias history but it became debacle for Enron because many countries criticized Enron for its poor performance and fake promises (Bettauer, 2009).Enrons molten natural gas power plant development project acresd in 1992 in Maharashtra state of India. It was supposed to fulfill Indias energy need with more than 2000 megawatts of electricity (Ahmed, 2012). But due to various(a) issues like dispute over prices between Indias government and Enron and criticism of Indians on this project cancelled the venture into an example of what can go wrong when two different cultures collide in a large scale development project (Bajaj, 2010). The project became debacle for Enron because it produced no electricity and in 2001 the company got bankrupted.Enron Corporation in 1992 proclaimed that it would develop a natural gas power plant deserving of $3 billion in Dabhol western state of Maharashtra, India. The project was expected to be the poster barbarian of Indias economic liberalization but unfortunately it became the symbol of project failure and people consider it as a human rights nightmare and an economic failure.The project was subject of criticism from the beginning. The company worked sacrifice in hand with dishonest Indian bureaucrats and politicians in order to complete the project but Indian public interest group filed charges against Enron and in 1993 Indian Reliance Company bribed Indian petroleum pastor to secure the contract (Leuz, & Schrand, 2009). Due to this bribery