Power Minister was not keen on power distribution franchise: Meghalaya CM

SHILLONG: 

Meghalaya Chief Minister Conrad K Sangma on Friday said that Power Minister James Sangma was against the contracting of power distribution to franchisees, but the finance department was not in a position to bail out the financially-torn Meghalaya Energy Corporation Limited (MeECL) every time, as it would be an additional burden for the department.

“The Finance Department suggested that 75 per cent of the interest and loan amount will be guaranteed by the state government and if there is a default, then the state government will pay but at least 25 per cent of the pressure must be taken by the MeECL in the form of Distribution Franchisees,” he said.

“That is how the background of how the Distribution Franchisees (DF) came in. There is a choice between improving the efficiency and the Finance Department, and state government, taking the entire burden of loan,” Conrad added.

The CM said if the 25 per cent of the DF does not go to Rural Electrification Corporation (REC), then it will put another Rs 560 crore of burden on the state government.

(Edited by Iban Mawrie)

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