Meghalaya: MeECL is very much capable of handling distribution circles, Power Minister
Meghalaya Power Minister James PK Sangma on Tuesday said that the government is trying its best to not hand over the Shillong Central and Eastern Distribution Circles to Distribution Franchisees.
The Power Minister held a meeting with the Chairman cum Managing Director (CMD) of the Meghalaya Energy Corporation Limited (MeECL) Arun Kumar Kembhavi and members of the Coordination Committee of Registered MeECL Employees Associations and Unions (CCORMAU) where issues concerning the proposed outsourcing of distribution circles and 100 per cent budgetary provision of the Rs 1345 crore Atmanirbhar loan were discussed.
“The MeECL is very much capable with good officers and with leadership like the present CMD, they are capable of managing these Circles and we do not need to give these circles to Distribution Franchisees as MeECL will stand to lose in the long run,” Sangma said.
The Power Minister also informed that a crucial meeting will be held on Wednesday to discuss on the matter.
A background of Power crisis in Meghalaya
Sangma stated that Meghalaya Power Sector is going through a tough phase because of the outstanding dues towards the central power generating stations. The outstanding dues till March 2020 stood at an approximate figure of Rs 1345 crore, which include a delayed payment surcharge of 18 per cent.
MeECL CMD Arunkumar Kembhavi said that the state will be repaying the dues at an amount of Rs 120 crore in the first three years, and Rs 300 after three years for the next 10 years.
It was informed that Meghalaya tops the list of defaulters among all the Northeastern states when it comes to payment of dues to central power generating and transmission companies.
Earlier, a delegation led by the CMD urged the state government to reconsider the decision to hand over the central and eastern circles to distribution franchisees and instead give a 100 per cent budgetary guarantee for the Rs 1345 loan. In return, MeECL will adhere to strict targets, if any, to be set forth by the higher authorities.
(Edited by Shankar Turha)
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