In an attempt to end the power crisis in Karnataka, Chhattisgarh will supply about 300 MW electricity to the southern state, an official said on Sunday.
"We have formally approved the Karnataka government's request. Initially about 300 MW will be supplied from this month," an official in the energy department told IANS.
The mineral-rich state agreed to supply power after Karnataka energy minister KS Eshwarappa met Chhattisgarh chief minister Raman Singh in Raipur on Saturday. Both the states are governed by Bharatiya Janata Party-led administrations.
The official said land at the Godhna village of the coal abundant Janjgir district of Chhattisgarh will be soon acquired as Karnataka wants to "move fast" on its Rs 60 billion thermal power project.
State-owned Karnataka Power Corporation Ltd (KPCL) signed an agreement with the Chhattisgarh government in September 2008 to set up a 1,200 MW coal-fired plant at Godhna.
"The Karnataka government is keen to commission the Godhna power plant by 2012 to bridge its widening demand and supply gap. Chhattisgarh has assured it will take care of all its (Karnataka's) needs," the official added.