On August 3, 1995, the Maharashtra state government of India, dominated by the nationalist, right-wing Bharatiya Janata Party (BJP), abruptly canceled Enron's $2.9 billion power project in Dabhol, located south of Bombay, the industrial heartland of India. This came as a huge blow to Rebecca P. Mark, the chairman and chief executive of Enron's international power unit, who spearheaded the Houston-based energy giant's international investment drive. Upon the news release, Enron's share price fell immediately by about 10 percent to $33.50. Mark sprang to action to resuscitate the deal with the Maharashtra state, promising concessions. This effort, however, was met with scorn from BJP politicians. Enron's Dabhol debacle cast a serious doubt on the company's aggressive global expansion strategy, involving some $ 10 billion in projects in power plants and pipelines spanning across Asia, South America, and the Middle East.

1. Discuss the chief mistakes that Enron made in India.

2. Discuss what Enron might have done differently to avoid its predicament in India.