NEEPCO gets 2 hydro power projects

SHILLONG: The state government has decided to allot the 57-MW Umduna and 69-MW Umjaut hydro power projects to North Eastern Electric Power Corporation Limited (NEEPCO).
Talking to media persons after the Cabinet meeting here on Thursday, Chief Minister Mukul Sangma said the Cabinet decided to hand over the projects to NEEPCO since state-owned Meghalaya Energy Corporation Limited will be engaged in developing the 210-MW Myntdu Leshka Hydro Power Project-Stage II, besides 15 other power projects.
The decision was taken after the government terminated the agreement with ETA Star Infrastructure Ltd, Mumbai, which was to develop the projects.
The state government has also agreed to extend guarantee for Meghalaya Power Generation Corporation Limited to avail a loan of Rs 60 crore for the Myntdu Leshka Hydro Electric Project, besides agreeing to the proposal of converting the loan component of the generation company to equity.
Sangma said the government has agreed to issue guarantee for the sanctioned loan for the project. “There are certain loans which need to be made available by Meghalaya Power Generation Corporation Limited and to avail them, the government has to extend guarantee against the loan for a specific purpose,” he told reporters.
Meanwhile, the Cabinet also agreed to convert the Rs 60.25-crore loan component that was extended to the company as equity at the ratio of 70:30.