Friday, November 15, 2024
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MeECL asks Govt to act as guarantor for Rs 1400-cr loan

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By Our Reporter

 SHILLONG: The Meghalaya Energy Corporation Limited (MeECL) has asked the State Government to act as its counter guarantor for a Rs 1400 crore loan which the Corporation plans to take from different financial institutions as capital for various projects.

The State Cabinet on Friday discussed the MeECL proposal and asked the Corporation to give a power presentation on its present financial position.

Informing media persons of the MeECL proposal, Chief Minister Dr Mukul Sangma observed that it was necessary for the Corporation to bring down their losses. Pointing out that the MeECL losses amounted to 40 per cent as against 30 per cent that the Corporation was projecting, the Chief Minister said that the MeECL tries to make up for the losses by hiking power tariff which takes a heavy toll on the consumers.

240 MW project proposed: The Chief Minister on Friday informed that the State Government would set up a 240 MW power project in collaboration with the North Eastern Power Corporation Ltd (NEEPCO) along the inter-state border with Assam.

“I have held discussions with the NEEPCO chairman for developing a 240 MW power project on joint venture with MeECL. It will be the first of its kind venture between the State Government and the Centre,” Dr Sangma said, adding that Meghalaya is expected to get a high share of energy from the joint venture project.

Reacting to a query on the proposed Ganol project, the Chief Minister said that the tender process has begun but all bidders have quoted very high rates. He also informed that he has sought a report in this regard.

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