With power sharing between power major NTPC and Uttar Pradesh government becoming a major hurdle for setting up of new power projects in the state, the Mayawati government has decided to go ahead and grant the 1,980-mw Lalitpur power project, that was to be initially executed by the NTPC, to Bajaj Hindusthan group, a relative newcomer in the thermal power sector.

Speaking to mediapersons at the MoU signing ceremony here on Thursday, CMD Uttar Pradesh Power Corporation (UPPCL), Navneet Sehgal said as much as 90% of power from this project would be the states share. Apart from this, the state would also get 90% of the 450 mw that would be generated at the five 90 mw units that the Bajaj group is setting up in the state.

It may be mentioned that the Lalitpur power plant was first visualised two years back as a 40,000-mw ultra mega plant and was to be built as a joint venture project between NTPC and UP. But later on, NTPC had second thought about going into the project as a joint partner and wanted to go it alone, to which UP government had reservations.

In the meantime, power-sharing agreement for the project became a major bone of contention and it was also revealed that the Lalitpur area of Bundelkand was very dry and getting water for a UMPP would be difficult. Hence, the UP government scaled down its capacity by half and dumped the prospect of NTPC executing the project. It then started scouting for a private player, who could set up the plant and yet give the state a majority of power.

The state government has a target of adding 25,000 mw in the 12th Plan Period. Granting the Lalitpur project to the Bajaj group through the MoU route is a first step in that direction, Sehgal said.