PTI

Lucknow: NTPC Ltd entered into a joint venture agreement with Uttar Pradesh electricity utility on 22 November to set up a 1,320MW plant in the state, which faces a peak hour shortage of upto 2,500MW a day.

NTPC and Uttar Pradesh Rajya Vidyut Utpadan Nigam (UPRVUNL) would form a joint venture company for the project, estimated to cost Rs7,200 crore.

The 2x660 MW project, to be funded in debt-equity ratio of 70:30, would come up at Meja in Allahabad.

Both the companies would invest Rs 1,080 crore each in the project, which would provide 75% (990 MW) of the power produced to the state.

Uttar Pradesh Chief Minister Mayawati said the state seeks to add 10,000MW power in the 11th Five Year plan period.

At present, Uttar Pradesh is facing severe power crisis of 1,500MW during off-peak hours and 2,000-2,500MW during peak hours.

Internal resources of Uttar Pradesh have the capacity of 2,500MW power generation, while 3,500MW is being imported from the central pool to bridge the gap between demand and supply, she added.

The target for additional power generation in the current financial year has been fixed at 1,250MW.

The chief minister added that the signing of the MoU for setting up the two units in Meja was an important step in the direction of achieving self sufficiency and the work on these units would start soon.

She said her government was according top priority to the power sector and initiating concrete steps to achieve self sufficiency in this direction.