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Cabinet approves power policy for thermal plants

The government on Thursday approved a new policy for allocation of power that is generated by upcoming state-run thermal power plants.

The government on Thursday approved a new policy for allocation of power that is generated by upcoming state-run thermal power plants. The new policy,which was cleared by the Union Cabinet in its meeting,has reworked the Gadgil formula on power sharing and has earmarked 50 per cent to the home states,where the project is located. It has also fixed an overall target generation capacity of one lakh MW for the 12th Five Year Plan (2012-17).

“The proposal is for allocation of 50 per cent power to the ‘home’ states,where the projects are located,35 per cent to the other constituents of the region and 15 per cent power as unallocated power at the disposal of the Centre,” a government official said after the Cabinet meeting.

The Gadgil formula provides for 10 per cent power as preferential allocation to home state,reserves 75 per cent for constituent states,including home state and retains the rest at Centre’s disposal.

Under the rule,central power generating stations at present can provide a maximum of 33.3 per cent of the electricity to the home state.

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The proposal pertains to 14 power projects — Gadarwara,Lara,Talcher Expansion,Kudgi,Darlipalli,Gajmara,Barethi Gidderbaha,Katwa,Dhuvran,Khargone,Pudimadka,Bilhaur and Kathua of National Thermal Power Corporation (NTPC) coming up during 12th and 13th Plan and all thermal plants of central public sector undertakings,an official statement said.

NTPC’s Barethi project in the Bundelkhand region of Madhya Pradesh,is expected to spur development of infrastructure in the region,the release added.

First published on: 07-01-2011 at 02:29 IST
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