The Union forests and environment ministry has cleared a proposal to set up a new Obra C Power plant in Uttar Pradesh.

The proposal for two units of new power plant with 660 mw production capacity was stuck up for the last three years. On Thursday, a committee of the forests and environment ministry met to consider the Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited's plea to clear the proposal in the interests of 22 crore people of the state. UPRVUNL MD AP Mishra confirmed that the centre has cleared the proposal.

"There was along with debate but ultimately we were able to convince the centre about the need to clear the proposal in the larger interest of the people of the state," he said. The clearance, however, is subject to some riders. UPRVUNL officials appeared sure that they would be able to meet the conditions put by the clearance committee within a stipulated time frame.

Meanwhile, in another positive development for UPRVUNL, the Obra B power plant with a total capacity of 220-megawatt power resumed production from Thursday. The plant was dysfunctional for the last four years.

In Delhi, Bajaj group today said it has synchronised the third 660 mw unit of its power plant at Lalitpur in Uttar Pradesh.