By Our Special Correspondent
SHILLONG, Feb 15: The Meghalaya Energy Corporation Limited (MeECL) did not suddenly hit rock bottom. A series of bad decisions, delayed payment to power supplying companies amongst others has brought the Corporation to where it is today.
And while everyone is aware that Meghalaya Government has got a loan of Rs 1,345 crore recently there are many riders to that. Meghalaya is now ranked in the 34th position, i.e. last among power distribution companies in India. The loan that was given is on certain preconditions such as reducing transmission and distribution (T&D) losses, increasing revenue etc., which will take considerable amount of time. Meanwhile, MeECL has got only Rs 388 crore released out of Rs 1,345 crore.
Speaking to the CMD, MeECL, Arun Kembhavi, we are informed that the terminal liabilities date back to 2010 which at current valuation is around Rs 2,000 crore which the state government owes to MeECL.
Successive governments should have paid the terminal liabilities to its employees and not burden the MeECL with it. That would have saved money for power purchase dues. Today MeECL has to pay a penalty of delayed payment on power purchase amounting to 450 crores. MeECL is negotiating with NTPC, NEEPCO and OTPC to waive off the penalty.
Speaking to this correspondent, Kembhavi said, “MeECL has not increased power tariff for the last 4 years. If the source of power in northeast for all states is the same then how can MeECL be asked to supply it to the consumers of Meghalaya at average of Rs 5-6 whereas Assam distribution company charges at Rs 7-8 per unit? This year Assam discom has sought increase in power tariff to Rs 9-10 per unit.”
On the present load shedding schedule, Kembhavi said, “It’s ironic that people don’t remember the 8-hour fixed load shedding in the winter months of 2019-2020. This year in the thick of winter there was no load shedding except for December 23 which was regulated from NEEPCO.”
The fact of the matter is that MeECL’s revenue earnings are only Rs 65-70 crore a month whereas monthly expenditure amounts to Rs 120 crore. The Corporation’s daily power purchase bill itself is Rs 1.2 crore. The troika of monthly salary bill of Rs 37 crore, daily power purchase and loan repayments is eating into the MeECL revenues. One is not less important than the other.
What adds to the MeECL’s woes is that the then Meghalaya Government had signed a costly 25 year power purchase agreement at Rs 6.20 per unit with NTPC which it cannot get out of and which has become like the hangman’s noose around the MeECL.
When asked what steps should be taken to turn around the MeECL, Kembhavi said “The Corporation needs proper planning and energy management and has to look for cheaper sources of power. This year we are planning to install 6 lakh smart meters as a first step in reducing transmission and distribution losses (T&D) losses.”
Meanwhile, Chief Minister Conrad Sangma has called a meeting on Tuesday to see how the present power crisis can be resolved.