Moving ahead with its renewed power policy to set up thermal power plants in the private sector, the UP Government on Tuesday entered into an agreement with Bajaj Hindusthan for setting up a 1980 MW thermal power plant at Bargarh in Chitrakoot. The government also signed an MoU with another private company, Parikh Alumnics, for setting up 250 MW power plant at Fathegarh.

The Department of Energy signed a memorandum of understanding with the company for setting up the power plant which is expected to come up within five years. The decision already had the endorsment of the energy task force (ETF) which is headed by UP chief secretary which gave its nod to the project last month. Significantly, the ETF is also looking into the possibility of expanding the project by another 1980 MW, subject to availability of land and water.

Secretary energy Navneet Sehgal told reporters that the state government was committed to make the state power sufficient by 2014. He said adequate coal linkage arrangements have been made for the power plant and added that the two power plants would come at a cost of 11,350 crore. "This would generate around 1500 jobs directly and 10,000 jobs indirectly"Sehgal said.

The state government earlied had inked an agreement with Bajaj Hindusthan for setting up a 1980 MW thermal power plant in Lalitpur. This is apart from the agreement for setting up five units of 90 MW each in the group's sugar mills. Together, this would pave way for another 450 MW.

The department in a statement said that 100% power produced in the plant made available to the state.

Sehegal said the government has set a target of putting in place power plants with a total installed capacity of 25,000 MW by 12th five year plan.

The two power projects which have been bagged by Bajaj Hindusthan were earlier slotted to come up with the help of NTPC. However, things did not materialise over the power sharing arrangments. The new energy policy has already paved way for setting up 1320 MW power plant in Fathepur and 660 MW power plant in Anpara C by Lanco. Likewise, the task force has already flagged a green signal for setting up a thermal power unit of 250 MW each in Farrukhabad and Auraiya in the private sector. While in Farrukhabad the state would sign up an MoU with Alumnics Limited, the one in Auraiya would be set up with the help of Unitech Machines Limited. The ETF had also agreed to set up a 1000 MW thermal power project in NCR but it would be providing 30 per cent of generation to UP at variable cost.