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The central government is considering a proposal to allow state-owned power companies such as NHPC and Satluj Jal Vidyut Nigam to sell upto 50% electricity generated from their hydel power stations to the respective states where the plants are located. This local allocation could go upto even 100% in exceptional cases.

Such a move could provide a level playing field for these state-owned companies with the private hydel power producers who offer higher allocations to the state.

Currently, public sector hydel power companies can allocate only a maximum of 30% to the home state.