The projects up to 2 MW would be allotted only to residents of the state.

Under the state's amended power policy, it will get free power from all the allotted projects.

The fixed quota for projects up to 5 MW is 6 percent free power for the first 12 years, 15 percent for up to 30 years, and 24 percent for up to 40 years. After 40 years, the project will be handed over to the government.

To encourage small entrepreneurs, the government is not charging any upfront premium for these projects.

However, for the projects above 5 MW, the fixed upfront premium is Rs.20 lakh per MW, which is in addition to free power bidding.

The average cost of a project is Rs.70 million per MW.