RGPPL's latest proposal is pending with the Central Electricity Regulatory Commission for tariff clearance.

Once CERC clears the proposal, it will then be taken up by the Maharashtra Electricity Regulatory Commission, which will decide how much power MSEDCL can buy at the approved tariff.

A senior MSEDCL official pointed out that with MERC not approving the summer buys from RGPPL (formerly Dabhol), the quantum of power that it may be allowed to buy from Dabhol may not be much.

This would seriously impact RGPPL, which has no committed offtakers for power. Though it is willing to sell power to anybody, MSEDCL is the sole buyer from RGPPL.

MSEDCL is hoping that the amount it has spent on buying Dabhol power will get covered in the current annual revenue requirement being heard by MERC.

However, Dabhol is not the most expensive power that Mahadiscom has bought. It has bought power from traders at prices above Rs 5.50 - from NTPC's gas-based Kawas plant at Rs 7 and from captive sources in Pune at Rs 10-11.

Even with the Centre exempting Dabhol's naphtha imports from all duties, the price of power remains high as naphtha prices are rising. Currently it is ruling at Rs 3,2182.78 per metric tonne.