NTPC has dumped the proposed 4,000 MW mega power project in Bundelkhand in Uttar Pardesh and instead has opted to put up the plant in Madhya Pradesh due to reported refusal of the Uttar Pradesh Government to cooperate in setting up the plant.

The project was part of the major developmental initiative announced by Prime Minister Manmohan Singh for the Bundelkhan region following a strong plea by AICC General Secretary Rahul Gandhi to initiative major projects in the under-developed region. However, NTPC officials said that due to non-cooperative attitude of the Uttar Pradesh Government, the company had been forced to shift the entire project to Barethi in Madhya Pradesh.

“One of the major reasons for shifting this mega project to Madhya Pradesh is that the State Government has gone out of the way to assure us that land, water and fuel for the project would not be a problem. NTPC is now conducting site-specific studies for the 3,960-MW project,'' a senior official remarked.

Strong differences between NTPC and the State Government over the usage of electricity generated by the project led to the abandoning of the project in the Bundelkhand region. The Uttar Pradesh Government wanted all the power produced from the project for the State, while present rules and guidelines permit sale of only 50 per cent of the electricity generated to the State where the plant is being set up. Besides, the State was unwilling to make land and water available for the project according to NTPC requirements. It wanted NTPC to set up the project in a joint venture with the Uttar Pradesh Power Corporation, which was found to be unfeasible, the official said.

NTPC has already initiated preliminary studies at the Barethi site and the project report is expected by the end of this year. The detailed project report (DPR) would be ready by the end of the current financial year and the project is slated to be commissioned during the XII Plan (2012-17). NTPC, which has power generation capacity of over 30,000 MW from all sources of energy, is planning to augment it to 50,000 MW by March 2012.

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