Govt becomes Rs 170-cr guarantor to MeECL

SHILLONG: The Cabinet on Monday approved a proposal from the Power Department to extend guarantee to Meghalaya Power Generation Corporation Limited (MPGCL) for issuance of a bond by the state government for MPGCL to avail a loan of Rs 170 crore.
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.
Deputy Chief Minister Prestone Tynsong said the matter pertaining to raising the bond of Rs 800 crore to MeECL last year was discussed in the Cabinet and MPGCL could not utilise it as the financial institution declined to extend loan to the corporation.
He said that the Cabinet on Monday approved to act as the guarantor for Rs 170 crore out of the bond of Rs 800 crore, which was approved last year and with this decision, the bond would reduce to Rs 630 crore for them.
Tynsong informed that Rs 170 crore will be used for improving the Umtrew power project.