Mr Jyotiraditya Scindia minister of State (Independent Charge) for Power recently informed the Lok Sabha that Power from Central Generating Stations to beneficiary States/Union Territories is allocated in accordance with formula for allocation of power being treated as guidelines from April, 2000.

As per these guidelines, allocation of power is made to the States/UTs in 2 parts, namely firm allocation of 85% and 15% unallocated power for allocation by Government of India for meeting short term requirement to bridge their deficit. The firm allocation includes allocation of 12% free power to the project States and 1% for local area development in case of Hydro Power Stations and 10% power to the home State in case of Thermal and Nuclear Power Stations.

The balance 72% or 75% power is distributed amongst the States/UTs of the region in accordance with the pattern of central plan assistance and energy consumption during the previous 5 years, both factors having equal weightage. Central plan assistance is determined in accordance with the Gadgil formula, in which population of the states is also taken into consideration.