SHILLONG: The state Power department, which has a backlog to clear dues worth Rs 1345 crore to other distribution companies, is now relying on the loan sought from the Rural Electrification Corporation (REC) to save the Meghalaya Energy Corporation Limited (MeECL) from slipping into deeper financial crisis.
In an attempt to bail out the Meghalaya Power Distribution Corporation Limited (MePDCL) from its perpetual financial muddle, the state government has opted for a loan of Rs 1345.72 crore for liquidating all the outstanding dues against purchase of power from various power generating institutions.
Apart from the dues worth Rs 1345 crore, the MeECL also has to clear terminal benefits for employees and former employees worth Rs 800 crore.
Asked about the idea behind taking a new loan for clearing old dues, a government official said the loan would come with a package to waive off 60 per cent of the surcharges as a one-time settlement.
The official also said that currently, the government has to pay the interest of loans from different agencies at a rate of 11 percent, but under this package, the interest has to be paid at the rate of 9 to 9.5 per cent.
“The scheme has come under the Atma Nirbhar Bharat Abhiyan where the central scheme stresses on infusing liquidity to distressed discoms (distribution companies) in the form of loans backed by the state government guarantee to clear the liabilities,” he said.
“In the first three, the department would only have to pay the interest,” the official said.
“Meghalaya’s discom is in such a bad financial mess that no other PSU or agency would give loan. Moreover, the credit ranking of the state’s discom is one of the worst in the country and under such circumstances, this is the best deal for Meghalaya,” he said.
The scheme validation is for three months and the state power department is close to formulising the loan with the REC.