The SEBs in the region have already agreed to buy the entire output. Price, however, has to be negotiated. NTPC will also commission another 500mw unit during the current financial year at the same plant.

Though the cost of power supplied from various plants varies and is higher in case of new stations, NTPC's power will still be cheaper than the power purchased from independent power producers (IPPs), said NTPC officials.

Western region which is the highest consumer NTPC's power buys over 4,600mw from it. With the capacity expansion of Vindhyachal plant the region will be able to draw another 1000mw.

Presently, of the total supply to region, the Maharashtra State Electricity Board (MSEB) consumes a maximum of 32 per cent followed by the Madhya Pradesh Electricity Board(MPEB) which draws 29 per cent and the Gujarat Electricity board (GEB) 21 per cent, balance is shared by Goa, Daman and Diu. Distribution from the additional capacity is likely to be in the same proportion.

NTPC operates four power station in the region, including the coal-based 2,100mw Korba and Vindhyachal plant which presently generates 1,200mw but will expand the capacity up to 2,200mw by the end of the year. The two 650mw gas-based plants are located in Gujarat.

As part of its expansion plan NTPC will further enhance the capacity of its Western region power plants by another 5,600mw. This include the proposed 2,000mw power plant at Sipat, also in Madhya Pradesh. The ongoing expansion programme will take care of the power deficit in the region.