The panel would consist of chief secretary R M Premkumar, energy secretary and finance secretary, State Power Minister Dilip Valse Patil said after the special cabinet meeting on Friday.
He said the centre's efforts to resolve the Dabhol issue was in final stages and state government wanted to authorise someone to discuss issues on behalf of the state.
The issues that would be negotiated include purchasing power at Rs 2.30 per unit at plant and load factor 80 per cent in the first and second phase of project, he said.
The picture is expected to become clear in a month's time and project is likely to resume power generation in six to seven months, Patil added.
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