Bhopal (PTI) The first Small Hydel Power Project of 1.9 Mega Watt electricity generation capacity by the private participation will come up at Barna in neighbouring Raisen district.

A Memorandum of Understanding (MoU) in this regard was signed between Barna Hydro Power Project Private Ltd (BHPPPL)and Madhya Pradesh government on Thursday, Water Resources Department officials said here on Friday.

On behalf of the BHPPPL, its Director, Udai Samant signed the MoU while Water Resources Department Executive Engineer, S M Jain inked the document on part of the state government, they said.

As per the agreement, BHPPPL would install Rs 10 crore 1.9 MW capacity by 2011-end at the Barna Large Irrigation Project in Raisen district, they added.

The agreement was signed in presence of Madhya Pradesh Water Sector Restructuring Project Director, P K Tiwari who is also the in-charge of Water Resources Department's Small Hydel Power Project, they said.

The state government had prepared a policy to encourage Small Hydel Power Projects through private sectors in 2006, officials said.

A survey and constructing related work in this Small Hydel Power Project would begin very soon, officials added.