State awaits Centre’s nod on package
SHILLONG: The State Government is still awaiting the approval of the Union Ministry of Power on the proposal to avail the Financial Restructuring Plan (FRP) for clearing outstanding dues to the various power distribution companies like NEEPCO through long term loans.
“We have already submitted the proposal to the Ministry to avail the support from the Centre in terms of clearing the outstanding dues to the various power distribution agencies through the financial restructuring package,” a senior government official said on Wednesday.
He said that once the Ministry approves the FRP, the State Government can avail loan from the nodal bank to clear the outstanding dues of the various companies.According to the official, all the short term loans and power purchase liabilities will be restructured by the nodal bank (SBI) and 50 per cent of these will be converted to long term loans with moratorium payment of principal up to three years.
It has been informed that 50 per cent of the liabilities will be converted to bonds to be sold by the distribution company and funds will be made available to service power purchase. The official also informed that outstanding due of more than Rs 300 crore to NEEPCO would be paid once the Power Ministry approves the FRP.
According to the official, the Government is drawing around 50 MW of power every month from NEEPCO incurring an expenditure of Rs 6-7 crore each month.
Earlier, the Power Ministry had set a deadline of July 31, 2013, for all states to avail the scheme following which Meghalaya had engaged a consultant – Feedback Infra Pvt. Ltd., New Delhi – to prepare the necessary documentation after in depth survey and research of the scenario prevailing in the State.
The Power Ministry will seek financial support of Rs 1,200 crore from the Finance Minister for 2013-14, towards restructuring the debt of the state power distribution companies.