This paper (by Girish Sant, Shantanu Dixit, and Subodh Wagle, published in Economic and Political Weekly, June 17, 1995)  presents one of the earliest and detailed analysis of the first power purchase agreement (PPA) of a state agency, in this case, Maharashtra State Electricity Board in India, with an independent power producer (in this case Dabhol Power Company [DPC], promoted by Enron). Different aspects of the PPA, such as impact of fluctuation of oil prices and that of currency exchange rate on the cost of DPC power, profitability of DPC are brought out. This Paper was also included in a Prayas publication -Enron Controversy. (This paper was written during early 1995. Since then the project has undergone many changes such as capacity increase and fuel change. The analysis in this paper is not updated, but the structure and many salient features of the PPA remain the same.)