SHILLONG: The Meghalaya Government has cancelled the memorandum of agreement (MoA) with Sew Energy Ltd for implementation of the 65MW Rangmaw hydro electric project.
The state Cabinet, which met here on Wednesday, also approved the refund of the upfront fee paid by Sew Energy Ltd.
Deputy Chief Minister Prestone Tynsong later told reporters that the previous dispensation had hurriedly signed the agreement in the year 2010.
“But after the groundwork had started, it was found that the project was economically not feasible,” he said.
Tynsong, however, said that a fresh expression of interest (EoI) would be issued to ensure good projects are proposed and implemented in the state.
While not many new power projects have been taken up in Meghalaya in recent times, the state government has cancelled several other power projects in the past couple of years.
Earlier this year, the state government had terminated the memorandum of agreement signed with Jaiprakash Power Ventures Limited after the 270MW Umngot hydro electric project failed to take off even after 13 years.
Similarly, in 2017, the MUA government had cancelled power project agreements with two private companies over non-initiation of work when the previous Cabinet had sanctioned the cancellation of the agreements signed with ETA Star Infrastructure Ltd for Umduna and Umjaod hydro power projects.
The previous dispensation had also scrapped two thermal projects allotted to Brijraj Power Metallics Ltd and MSGC Power Ltd as the firms did not show any interest in proceeding with the projects.