diff --git a/server/src/com/cloud/upgrade/dao/Upgrade301to302.java b/server/src/com/cloud/upgrade/dao/Upgrade301to302.java
index ec8d1ede290..c2ff70afc6e 100644
--- a/server/src/com/cloud/upgrade/dao/Upgrade301to302.java
+++ b/server/src/com/cloud/upgrade/dao/Upgrade301to302.java
@@ -17,6 +17,9 @@ package com.cloud.upgrade.dao;
  */
 import java.io.File;
 import java.sql.Connection;
+import java.util.ArrayList;
+import java.util.HashMap;
+import java.util.List;
 
 import org.apache.log4j.Logger;
 
@@ -51,8 +54,22 @@ public class Upgrade301to302 implements DbUpgrade {
         return new File[] { new File(script) };
     }
 
+    private void dropKeysIfExists(Connection conn) {
+        HashMap<String, List<String>> uniqueKeys = new HashMap<String, List<String>>();
+        List<String> keys = new ArrayList<String>();
+        
+        keys.add("i_host__allocation_state");
+        uniqueKeys.put("host", keys);
+        
+        s_logger.debug("Droping i_host__allocation_state key in host table");
+        for (String tableName : uniqueKeys.keySet()) {
+            DbUpgradeUtils.dropKeysIfExist(conn, tableName, uniqueKeys.get(tableName), false);
+        }
+    }
+    
     @Override
     public void performDataMigration(Connection conn) {
+        dropKeysIfExists(conn);
     }
 
     @Override
diff --git a/setup/db/db/schema-301to302.sql b/setup/db/db/schema-301to302.sql
index e11160852dc..f51f3977054 100755
--- a/setup/db/db/schema-301to302.sql
+++ b/setup/db/db/schema-301to302.sql
@@ -21,7 +21,5 @@ DELETE FROM `cloud`.`configuration` WHERE name='secstorage.vm.ram.size';
 INSERT IGNORE INTO `cloud`.`configuration` VALUES ('Advanced', 'DEFAULT', 'management-server', 'consoleproxy.service.offering', NULL, 'Service offering used by console proxy; if NULL - system offering will be used');
 
 INSERT IGNORE INTO `cloud`.`configuration` VALUES ('Advanced', 'DEFAULT', 'management-server', 'secstorage.service.offering', NULL, 'Service offering used by secondary storage; if NULL - system offering will be used');
-
-DROP INDEX `i_host__allocation_state` ON `cloud`.`host`;
 
 ALTER TABLE `cloud`.`domain_router` ADD CONSTRAINT `fk_domain_router__element_id` FOREIGN KEY `fk_domain_router__element_id`(`element_id`) REFERENCES `virtual_router_providers`(`id`);