New Delhi, Feb 7 (IANS): The Union Cabinet on Wednesday approved a proposal to allocate 85 per cent of electricity generated by NTPC's Telangana Super Thermal Power Project (TSTPP) to the state.

Additionally, the Power Ministry proposal also mandates allocation of 85 per cent of power generated from the expansion project of Patratu Thermal Power Station in Jharkhand to the state government, an official release said.

The PTPS belongs to Patratu Vidyut Utpadan Nigam Ltd (PVUNL), a subsidiary company of the NTPC.

Both the projects are being set up in two phases, the release said, adding that the TSTPP will come up at Ramagundam in Telangana's Peddapalli district and Patratu Super Thermal Power Station in Jharkhand's Ramgarh district.

"The first phase of the TSTPP will comprise two units of 800 MW each and second phase three units of 800 MW each. PTPS will comprise three units of 800 MW each in first phase and two units 800 MW each in second phase."

According to the statement, the allocation of 85 per cent power from PTPS expansion project was the prime condition in the joint venture agreement between the Jharkhand government and the NTPC for the 4,000 MW capacity expansion of PTPS.