State-run NTPC today said that it will invest about Rs 20,000 crore for setting up a coal-based power project in Madhya Pradesh.
NTPC has executed a Memorandun of Understanding (MoU) with Madhya Pradesh and MP Power Trading Company for setting up a 3,960 MW thermal power project at Barethi in the state, the company informed the National Stock Exchange.
For generating 1 MW of thermal power an investment of about Rs 5 crore is required.
The project is likely to be commissioned during the XIIth Five Year Plan Period (2012-17).
Originally, NTPC had planned a 3,960 MW supercritical thermal power project in Uttar Pradesh. However, the plans ran into problems over differences with the state government on usage of electricity generated by the project.
The government wanted all the power produced from the project for Uttar Pradesh, while rules permit sale of only 50 per cent of the electricity generated to the state where the plant is being set up.
NTPC, which has power generation capacity of over 30,000 MW from all sources of energy, is planning to augment it to 50,000 MW by March 2012.
Shares of NTPC were trading at Rs 208.25, up 2.08 per cent on the NSE.