The government has approved a new policy for allocation of power to be generated by upcoming state-run thermal power plants. It has earmarked 50 per cent to the home states and has fixed an overall target generation capacity of 100,000 MW for the 12th Five Year Plan. The policy proposal had allocated 50 per cent power to the home states, where the projects are located, 35 per cent to the other constituents of the region and 15 per cent power as unallocated power at the disposal of the Centre. Currently, power is shared as per Gadgil formula, which provides for 10 per cent power as preferential allocation to home state, reserves 75 per cent for constituent states, including home state and retains for the Centre. Enhancement of allocation to is the only new element.