The MoU was signed by Aman Kumar Singh, principal secretary, energy, Chhattisgarh and his Telangana counterpart S K Joshi.
Telangana Chief Minister K Chandrasekhar Rao and Chhattisgarh Chief Minister Raman Singh were present on this occasion.
"Chhattisgarh is an energy-surplus state and it would be our priority to supply electricity to Telangana and other neighbouring states as per their requirement," Singh said.
Under the MoU, Chhattisgarh would supply 1,000 MW of electricity from Madwa Thermal Power Project in Janjgir-Champa district.
The under-construction Madwa Project is expected to start production by March 2015.
Rao thanked the Chhattisgarh Chief Minister. "I had personally requested Dr Raman Singh for electricity, to which he responded heartily," Rao said.
The two states would cooperate in other sectors such as irrigation and development too, he added.
Rao also stressed the need to restart the Inchampalli irrigation Project on Godawari river on the Chhattisgarh- Telangana border.
