Samajwadi Party supremo Mulayam Singh Yadav inaugurated the unit at Mirchwara in the presence of UP PWD Minister Shivpal Singh Yadav and Minister of State Arvind Singh Gope.
State Chief Minister Akhilesh Yadav was scheduled to inaugurate the unit, but he could not make it to the venue due to some technical reasons.
LPGCL had signed an agreement with the UP government in 2010 to set up 1980 MW (3 units of 660 MW each) super critical thermal power plant at Lalitpur in the Bundelkhand district.
The other two units are in advanced stage of completion and are scheduled for commissioning soon, it added.
The main plant package is being executed by BHEL while other important packages are being completed by established vendors including L&T, Simplex and Paharpur.
The total power produced from this project would be supplied to the UP state discoms as per regulated tariff.
The project comes at a time when the state government is targeting to increase power availability from current 10,000 MW to 20,000 MW by 2016-2017.
"LPGCL will contribute to this target and is expected to reduce the state's dependence on the energy exchange and consequently lowering congestion on the tranmission network," the statement said.
Bajaj Group has interests in sugar, power, real estate, personal care products and infrastructure. Bajaj Hindusthan is the country's largest sugar firm.
The group's power venture includes Bajaj Energy Private Ltd, which has 450 MW thermal power generation commissioned in 2012 and the LPGCL.
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