The proposal is for allocation of 50% power to the 'Home' States (the States where the power projects are located), 35 % allocation of power to the other constituents of the Region and 15% power as unallocated power at the disposal of the Government of India from the fourteen power projects namely Gadarwara, Lara, Talcher Expansion, Kudgi, Darlipalli, Gajmara, Barethi Gidderbaha, Katwa, Dhuvran, Khargone, Pudimadka, Bilhaur and Kathua of NTPC coming up during 12lh Plan and 13th Plan and all thermal power plants of the Central Public Sector Undertakings in future. Barethi project of NTPC, which is coming up in the Bundelkhand region of Madhya Pradesh, is expected to spur development of infrastructure in the region. While 50% of power from the project is proposed to be allocated to Madhya Pradesh, the 'Home' State and 15% of power remains as unallocated power, 35% of power is proposed to be allocated as a special dispensation to Uttar Pradesh for development in the Bundelkhand region of Uttar Pradesh.

Enhancement of allocation to 50% to the Home States is the only new element in the present proposal. The implementation of the proposal will help in developing power projects and Increased generation in the Sates/Regions, where there are acute shortages of power. It will also help the growth of agriculture. The proposed project in the Bundelkhand region will foster development in an area, which has had low growth.