After approving the Rs 7,277-crore special package for Bundelkhand, the Centre is working on a plan not only to give Uttar Pradesh its first ultra mega power project in Chitrakoot district of Bundelkhand but also a higher power allocation than other states as per the national policy.

Negotiations on the issue of power allocation from the 4,000-mw project to be set up by NTPC at a cost of Rs 18,000 crore are on between the Centre and the state government. While the state government has asked for 100% power allocation, citing severe shortfall, the Centre has taken recourse to the argument that the national policy allows for allocating up to 50% power to the home state and the policy cannot be changed.

However, after examining the critical gap between the demand and supply of power in Uttar Pradesh, the Centre is likely to treat the UP government?s request as a special case and is planning to support it to some extent.

Talking to FE, power secretary Harishankar Brahma confirmed that the state government has offered them land and water linkages for the project and the ministry is working overtime to put in place a memorandum of understanding (MoU) by the month-end.

?We will sign the MoU by the end of this month,? Brahma said. When asked as to what is being done on the vexed issue of power allocation, he said that negotiations with the UP government are on to strike a consensus on the power allocation. ?UP is not alone. MP is also part of Bundelkhand. We are negotiating with the UP government on this issue ,? he added. One thing is for sure is that it will be more than 50%, as is allowed in the national policy.