The Bajaj Hindustan led consortium under the MoU route has recently got the approval from the Mayawati cabinet to establish a 1980 MW thermal power plant in Lalitpur.

The announcement came into the picture just minutes after the cabinet meeting held on Tuesday. However, the decision is making a lot of news as it has opted to go for the MoU route rather than the traditional practice of doing so through the case-II bidding procedure. In fact, industry officials are giving hints that the signing ceremony between the state government and Bajaj Hindustan led consortium will take place on Thursday.

According to the state governments Power Policy-2009 the power projects can be established by both the MoU route as well as the Case II bidding process in the country. Notably, earlier, the state government had decided to hand over the project to NTPC for the 4000 MW power project at Lalitpur but later refrained from its and decided to award the contract to Bajaj Hindustan under the MoU route. Under the terms of the MoU, the power generated from the Lalitpur plant, 90% of it will be sold to the State government while the remaining 10%, wherever the parties deem fit.