Following is an excerpt from a report in Statesman.

The state government formulated policy guidelines for power generators covering all those who have already signed MoUs and those who are in the pipeline and stipulated availability of power as state shares with the quantum being linked to coal block and coal linkages.

Henceforth the MoUs will have a provision entitling a nominated agency authorised by the state government to purchase 14 per cent power from a generator with coal linkage and 12 per cent power from those without coal linkage. The power purchased from the generator by the state or its authorised agency will be at variable costs determined by the OERC.

For existing power producers, the same has been fixed at seven and five per cent of the generation respectively. However with regards to ultra mega power projects, the state will have a right to purchase upto 50 per cent of power from it through competitive bidding at the lowest bid price only.

The government has also said that ultra mega power projects should contributed five per cent of their profit to the peripheral development fund.

The MoUs and power purchase agreements signed already may be modified and the progress of existing independent power producers will be reviewed, it said.

Ultra mega power projects will signed MoU with the state government for support in getting various clearances and assistance in rehabilitation measures as per state policy.

The central sector power generators will however follow government of India guidelines on sharing of power and state will get 10 per cent home state share from the plant in addition to the 20 per cent share through Gadgil formula.

The Centre will be required for 15 per cent discretionary power from NTPC Kaniha while agreeing to the proposal of NTPC in Ib Valley project, stated the Cabinet.