The Uttar Pradesh cabinet has the signing of a memorandum of understanding (MoU) for setting up seven new thermal power plants in the State. These projects, entailing an investment of Rs 25,000 crore will generate an additional 4,500 MW of power. Uttar Pradesh Power Corporation Ltd Chairman Navneet Sehgal said Each of these plants are coming up in the private sector and would be set up through the MOU route. Under the arrangement, the state would provide land and water for setting up and running the plant.

Five of the proposed plants are to be set up by Bajaj Hindusthan Ltd., the country's leading sugar producer. The company has planned foray into thermal energy sector and plans to set up power plants at Pilibhit, Lakhimpur-Kheri, Shahjahanpur, Gonda and Utraula. Lanco Infratech has received the nod to set up a 1,320 MW thermal power station at Fatehpur.

The company also plans to set up power plants at Pilibhit, Lakhimpur-Kheri, Shahjahanpur, Gonda and Utraula. Lanco Infratech has received the nod to set up a 1,320 MW thermal power station at Fatehpur.

Besides this, the state government has given also clearance to Bajaj Hindusthan to set up a 19,809-mw coal-fired power plant in Lalitpur district of Bundelkhand. The project will be implemented by Lalitpur Power Generation Company Ltd, a SPV set up by UPPCL. Around 150 acres of land has been identified for the project at Mirchwara village of Lalitpur. Water will be sourced from the Rajghat dam through a pipe line. The project, which is expected to commence operations by 2012, will provide 90% of the electricity generated to the state.