Raipur, July 11 - India's largest power producer, the National Thermal Power Corporation (NTPC), will sign a deal with the Chhattisgarh government Sunday for setting up a 4,000 MW coal-fired power plant in the state, officials said here Saturday.

The memorandum of understanding (MoU) for the ultra mega power project (UMPP) will be signed Sunday afternoon in the presence of Union Power Minister Sushil Kumar Shinde and Chhattisgarh Chief Minister Raman Singh.

The plant will come up at Lara village in the state's northern coal-abundant Raigarh district.

The central government, which had earlier selected Chhattisgarh as one of the five states for setting up UMPPs, reportedly rejected the project last August as the state government stuck to its demand for 50 percent of power from the project at production cost.

The project was put back on track late last month after Shinde and Raman Singh had a meeting in New Delhi. The state government has committed to make sufficient land and water available to help the NTPC set up the plant at the earliest.

The NTPC will also sign a deal with the state government Sunday for setting up an Indian Institute of Information Technology (IIIT) in Chhattisgarh.