The beleaguered Dabhol power plant is unlikely to be restarted this month as was earlier expected, with Maharashtra government and Ratnagiri Gas and Power Pvt Ltd, the new owner of the project, failing to reach an agreement on power tariff.

Maharashtra Power Minister Dilip Walse-Patil, who met Union Power Minister Sushilkumar Shinde and power secretary R V Shahi in New Delhi on Monday, said the state would buy electricity from the 740 MW Block-II of the project.

However, he said the project "would start in three weeks and would be operated on imported naphtha for five months" till March 2007, by when liquefied natural gas is expected.

Walse-Patil did not say at what tariff the state government would buy electricity from RGPPL.

Moreover, RGPPL is also yet to buy naphtha for running the plant for five months. It has, however, roped in Indian Oil Corporation [Get Quote], for importing the fuel.

The meeting comes days after central power regulator CERC allowed RGPPL to sell electricity to Maharashtra but refused to fix any tariff. CERC had said the two parties should arrive at a mutually agreed price.

Industry sources said the cost of generation on imported naphtha would come out to be around Rs 5.50-6.50 per unit, higher than Rs 4.25 per unit that Maharashtra paid to RGPPL during May and June this year.