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SHILLONG: The Meghalaya cabinet has approved a proposal from the Power Department for extension of guarantee to Meghalaya Power Generation Corporation Limited (MePGCL) for issuance of guarantee or bond by the State Government for the firm to avail a loan of Rs 170 crores.
It may be recalled that the Meghalaya cabinet last year had approved a proposal of the Meghalaya Energy Corporation Limited (MeECL) to raise the bond of Rs 800 crore with the state government as the guarantor to enable the MeECL to raise the bond which is to the tune of Rs 800 crore
Deputy Chief Minister, Prestone Tynsong said that the matter pertaining to the raising of bond to Rs 800 crores to Meghalaya Energy Corporation Limited (MeECL) last year was discussed in the cabinet and the firm could not utilise it meaning the financial institution declined to extend loan to the corporaton
He said that the Cabinet on Monday approved to act as the guarantor for Rs 170 crores out of the bond of Rs 800 crore which was approved last year and with this decision, the bond would be reduce to Rs 630 crores for them
Tynsong informed that the amount of Rs 170 crores would be used for improving the Umtrew Power Project.