SHILLONG: The state government is looking at a multi-pronged approach to bail the Power department out of a debilitating debt burden of around Rs 2,000 crore.
“There are multiple approaches and interventions we are looking at. We can reduce the expenditure of Meghalaya Energy Corporation Limited (MeECL), plug leakages and loopholes and at the same time increase its revenue,” Power Minister James Sangma said on Wednesday.
The minister’s expression of intent to uplift the department came on a day the Centre announced a Rs 90,000-crore liquidity infusion into cash-strapped discoms (state electricity distribution companies) facing demand slump due to the ongoing lockdown to contain COVID-19.
The minister said that the COVID-19 pandemic will have a negative impact on discoms across the globe. “This is not about Meghalaya or MeECL. Discoms across the country and across the world are going to face acute distress. There will be a lot of problems which discoms will face,” Sangma told reporters.
Pointing out that discoms across the globe are already facing a lot of problems and COVID-19 is not helping, he said that on the contrary, the pandemic is going to increase their burden and difficulties. “It is a challenging situation for the power and energy sector. It’s not just us, but it will have an impact globally. We are looking at ways and means to gear up in order to face this challenge,” he said.
It may be recalled that the union government had recently approved a financial relief package for the power sector, that allowed a three-month moratorium to state-owned electricity distribution companies on payments for the electricity bought by them, and reducing the payment of security amount by half for future power purchases.
These measures, including waiving penalty for late payments, were part of the government’s efforts to ensure round-the-clock electricity supply during the lockdown.
Meanwhile, Sangma also said that the department has prepared a blueprint to improve the overall power scenario in the state.
“With the kind of impact that COVID-19 pandemic is likely to have, we will have to put in more efforts to improve the power sector by way of increasing revenue and plugging loopholes and leakages”, Sangma said.
On the outstanding dues to NEEPCO, he said that the amount was “phenomenal,” adding that previously it was Rs 600-crore plus which must have gone up by now. It is a big amount and a big challenge which the MeECL faces to repay the outstanding amount, he said.
While making the announcement on Wednesday of Rs 90,000 crore liquidity infusion into cash-strapped discoms, Union Finance Minister Nirmala Sitharaman said at present discoms have a total outstanding of Rs 94,000 crore towards power generation firms (gencos). The liquidity in the form of loans to discoms would be given against state guarantees for exclusive purpose of discharging their liabilities to gencos. This scheme would link to specific activities/reforms by the discoms like digital payments facility for consumers, liquidation of outstanding dues of state governments and plan to reduce financial and operational losses. (With PTI)
