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Rs 1,345-crore central loan to bail out MeECL

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SHILLONG, Jan 14: The state government is availing a loan of Rs 1,345 crore from the central government under a special package to clear all dues the state-owned MeECL has to pay to different generating and transmission companies.
Last year, the government had taken a decision to avail Atmanirbhar COVID loan from the Centre to liquidate all outstanding dues against the purchase of power from various power-generating institutions.
“This loan under the special package given by the Prime Minister will be disbursed to all gencos and transcos which include NEEPCO, OTPC, NHPC and PGCIL. We expect that we will be able to end all our liabilities to the generating companies and transmission companies,” Power Minister James Sangma told reporters on Thursday.
On how the government will clear another loan being taken to clear dues, he said since the rate of interest is much lower compared to market borrowing, the government wanted to seize the opportunity.
He said given the calculations done by the government, the state will gain in the long term by availing the loan.
As per an RTI report filed a couple of months back, the financially-sick MeECL has Rs 1,460 crore of outstanding payment liability to different power-generating companies.
The state has to clear debt of Rs 656.57 crore to NEEPCO, including outstanding dues of Rs 364.55 crore and outstanding surcharge of Rs 292.02 crore.
In addition, it has to clear debt of Rs 5,553.71 crore to NTPC Ltd including outstanding dues of Rs 423.59 crore and outstanding surcharge of Rs 130.12 crore.
Besides, the MeECL owes OTPC Rs 147.08 crore including outstanding dues of Rs 137.99 crore and outstanding surcharge of Rs 9.09 crore.
The state also has to clear debts of Rs 73.69 crore to PGCI Ltd and Rs 28.24 crore to NHPC Ltd.
Just before the New Year, the NEEPCO had regulated the supply of power to the state for a day but withdrew the measure following a request by the government.
The Power Minister said the government is expecting the commissioning of Ganol Hydro Power Project by May 2022 and the progress of work is being monitored by the High Powered Committee, chaired by the state Chief Secretary.

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