Karchana power plant project was proposed in 2007 under the then Bahujan Samaj Party (BSP) government of Uttar Pradesh (UP). Around 2,500 bighas of land was acquired from 2,286 farmers in eight villages. The project was handed over to Jaypee Group in 2009. The project never takes off due to consistent and often violent protests by the farmers over compensation .
After the ouster of Mayawati government in 2012, JP Group was reluctant to execute the project. But, officials in the power sector say the reluctance had little to do with the land issue and was mainly due to political uncertainty in the state. The Uttar Pradesh Government has taken initiative to revive the power plant since the state has already made arrangements for coal and water linkages for the project and the developer too has been selected through competitive bidding, efforts should be made by the administration to resume talks with farmers  On the other hand in April 2013 Allahabad High Court allowed writ petitions of the farmers and stalled the project. The court order stipulated that farmers who had already taken the compensation should either return the money and take back the land or willingly hand over the land for the project .
Recently farmers are showing interest after the recent Land Acquisition and Rehabilitation Act (2013) passed in Indian Parliament. Farmers have stipulated that their compensation be improved and they be rehabilitated under the Land Bill. This development is in contrast to the earlier stand maintained by farmers, who vehemently opposed to the power plant regardless of any improvement in the compensation