Beginning from Noida, the privatisation would be extended to other major industrial belts in Kanpur, Lucknow, Moradabad and Agra. Similarly, industrial associations will be given rights to distribute power within the industrial areas.

The new policy also provides for adoption of liberal captive power generation.

According to chief minister Kalyan Singh, "New initiatives on the power front will ensure 24-hour uninterrupted power supply to all industrial areas. The facility would also be extended to all industrial units putting in investments of more than Rs 50 crore. It will also cover EOUs, electronics and food processing units with an investment of more than Rs 10 crore." The power feeders with more than 75 per cent industrial load will be classified as industrial feeders and declared `no power cut zones' Singh said adding that all connections of other categories would be removed by UPSEB from these feeders.

Industrial consumers drawing power from the primary system will be given a special rebate on power tariff which will be higher than the one presently in use.

To narrow down the shortfall of power supply in the power-deficit state and to ensure better availability of power, the state government also signed two power purchase agreements (PPA) with National Thermal Power Corporation (NTPC) and Roza Thermal Power Plant for additional 1,067 mw of power.

The state had already introduced privatisation of power distribution way back in Greater Noida in 1993 in collaboration with RPG group. This has improved the power situation in the area tremendously.

The state government has also decided to set up a state electricity regulatory commission in the power sector soon to ensure a level playing field for entrepreneurs entering the power sector.

Dispelling apprehensions of new entrepreneurs venturing intothe power sector in the proposed Uttranchal state, Singh said both states will jointly solve the matter and there was no question of the proposed new state becoming a mere colony of Uttar Pradesh.