Shillong: Meghalaya chief minister Conrad K Sangma on Wednesday informed that the Cabinet has decided to give a chance to Meghalaya Energy Corporation Limited (MeECL) and Power Department with 100% budgetary support for the Aatmanirbhar loan.
The state government has put certain targets to be met in a time-bound manner. It also wants security in the form of mortgaging assets to the government of Meghalaya to ensure safety and security for the state government.
The Cabinet has instructed the finance and power department to work out, in detail, the different targets that the power department and MeECL will achieve.
The state government will also inform the Rural Electrification Corporation (REC) and Power Finance Corporation (PFC) of the decision.
Briefing reporters after the Cabinet meeting, CM Conrad K Sangma said that REC and PFC had wanted this in the initial stage, so they will not have any issues with the government’s decision.
Sangma informed that the Cabinet discussed the reforms and challenges faced by the MeECL and the power department. “Today’s discussion was about the Aatmanirbhar loan taken by MeECL to pay the dues of all power generation companies, dues which have been there for 10-plus years, which has amounted to over Rs 1,300 crore along with surcharges,” informed Sangma.
The government received the first tranche of the loan, and before releasing the second tranche, which is more than Rs 600 cr, the PFC REC and power department stressed two options.
One, that the Government of Meghalaya gives full budgetary support for the repayment of this loan along with interest which would amount to about Rs 2,000 crores in the next ten years. Two, partial budgetary support along with certain restructuring within the MeECL, which would be in the form of giving Distribution Franchisees to the REC and the PFC.