The duo also took up the long-pending demand for providing sales tax exemption to Indica. The government had already expressed its inability to provide the relief at this point of time, when the state is reeling under severe financial crisis.

Ironically, Mr Deshmukh who wanted to rush for an important meeting asked Mr Tata and Mr Wadia to meet him in Mumbai after the completion of the ongoing winter session of the state legislature to discuss the nitty-gritty of sales tax sops for Indica.

The industrialist duo's unscheduled visit to Nagpur deserves special significance, especially in the backdrop of BSES filing a petition before the Maharashtra Electricity Regulatory Commission (MERC), demanding an ad interim stay on cut of standby power supply from Tata Power. Although BSES and Tata Power have made their legal submissions before the MERC, the latter is yet to give its ruling on the admission of BSES petition.

The visit of Mr Tata and Mr Wadia in the Tata jet is crucial, as Tata Power has vehemently opposed the state government's last-minute decision to keep its order on equally sharing standby charges of around Rs 362 crore by Tata Power and BSES dated March 22, 2000 in abeyance on the grounds that the matter has been referred to the MERC. Furthermore, Tata Power contended that the the March 22 order remains in place as the government has neither withdrawn nor revoked it directing the MERC to decide the fate of dispute.

Tata Power also took strong objection on the government's decision to delegate power under section 22 (2) (n) of the Central Electricity Act, 1998 to look into the dispute and adjudicate. Tata Power questioned the MERC's jurisdiction to take up the issue especially when it had been resolved through the government order of March 22. The Tata Group chairman is believed to have appealed to the chief minister not to withdraw or revoke its March 22 order on the grounds of finality. Mr Tata reiterated that the dispute has been settled and there was no need for it to be taken up again with the MERC.

Mr Tata is believed to have pointed out that it was not possible for Tata Power to contribute standby charges of Rs 274 crore to MSEB, which had threatened to disconnect its standby power supply.

However, Mr Deshmukh, who was accompanied by energy minister Padmasinh Patil, finance minister Jayant Patil and chief secretary Arun Bongirwar expressed his inability to intervene at this point of time, especially when the matter has been seized with the MERC. Sources close to the chief minister told The Financial Express that Mr Deshmukh asked Mr Tata to wait until the MERC gives its ruling.