Raipur, July 23 - Power utility NTPC Ltd has agreed to provide 35 percent of the electricity produced at its upcoming 500 MW stage-III Korba project to Chhattisgarh, a government statement said Thursday.

'NTPC (formerly National Thermal Power Corp) has agreed to provide 175 MW power to Chhattisgarh from its 500 MW stage-III Korba project that will begin generation by February 2010,' the statement said.

NTPC and Chhattisgarh State Power Distribution Co will sign a formal power purchase agreement July 27.

Presently, NTPC produces 2,100 MW from its Korba facilities and its production will touch 2,600 MW once the stage-III unit begins generation.