"The state cabinet at its meeting chaired by the Chief Minister Shivraj Singh Chouhan approved the proposal for allotment of 111.709 hectare government land at Selda and Dalchi villages under Barwah tehsil of Khargone district to NTPC for setting up thermal power plant," Parliamentary Affairs Minister and Cabinet Spokesperson Narottam Mishra told reporters.
The land is proposed to be allotted to NTPC at Rs five lakh per acre. However, the final price would also depend upon the prevailing market price as per the 2012-13 guidelines, he said.
The Cabinet also approved the "Madhya Pradesh (Investment in Power Generation Project) Policy 2012" which aimed at encouraging companies to set up thermal power plants.
Under the new policy, 10 per cent power to be generated at these plants will be supplied to Madhya Pradesh at floating rates and generating company has to pay six paise per unit to the state for selling power outside the state, the Minister said.
The Cabinet also took number of other important decisions including setting up of Madhya Pradesh Corporation for managing Nal-Jal schemes in rural areas under which water will be supplied in villages through water tapes and setting up nine new colleges at Indragarh, Baktara, Sheopur, Jaithari, Isagarh, Sitamau, Nateran, Dobi and Tonkhurd.