The latest announcement comes following approval of the price of supply and procurement process from the state’s regulator, reports The Economic Times.
In 2005, the power purchase agreement (PPA) was signed but supply was held up due to various disputes.
The issue was sorted out recently with the MP Power Management Company (MP PMC), Power Trading Corporation (PTC) and Lanco reaching a settlement.
Now PTC will source the 300MW power to supply to the MP discoms, which are represented by MP PMC.
Lanco operates two of its 300MW generating units in Chhattisgarh using coal procured from Coal India subsidiary South Eastern Coalfields.
Lanco group chairman L Madhusudhan Rao said, "The revised PPA benefits Madhya Pradesh with supply of 300 MW of power on a long-term basis at one of the lowest tariffs in the region."
