The turbulent tale of Project Windstorm

In the first of a two-part series, Bob Nelson uses a fictional case study to illustrate the broad strategic considerations that are necessary when developing and financing an infrastructure project in India

In the 1990s, it became fashionable in infrastructure circles to say that India was not the name of a country but rather an acronym for “I’ll Never Do It Again”.

The vicissitudes of large, fast-track power projects often resulted in unfinished plans and ventures that run into serious difficulties. Perhaps the most notable of these was the Dabhol power plant, which had to be restructured in the mid-1990s and again less than a decade later before falling into disuse – lending the fashionable witticism a fair amount of truth.

But there have also been many success stories. One example is the Tirapur water project, led by the Mahindra group. A number of smaller-scale power projects have also prevailed and these successes, combined with India’s sustained economic growth, have helped transform the reputation of infrastructure from a sector not to be touched to one of the most promising and talked about for future foreign investment in India.

Bob Nelson is a partner at Thelen Reid Brown Raysman & Steiner. He can be contacted at rlnelson@thelen.com.