SHILLONG, June 7: The ministers in the NPP-led MDA government have opposed the proposal to let a franchisee handle two profit-making distribution circles in the Meghalaya Power Distribution Corporation Limited (MePDCL).
Confirming this on Monday, Agriculture Minister and People’s Democratic Front president Banteidor Lyngdoh said Chief Minister Conrad K. Sangma has convened a Cabinet meeting on Wednesday to discuss the issue.
“Most of the MDA constituents have strongly opposed the proposal to engage a distribution franchisee in the two profit-making distribution circles. We will not allow this proposal to materialise and the decision must be withdrawn at the Cabinet meeting,” Lyngdoh said.
The state government had proposed to engage the REC Power Distribution Company Limited (RECPDCL) as the distribution franchisee of the Shillong Central Distribution Circle and Eastern Distribution Circle with an injection of nearly 25 per cent of the entire state.
Lyngdoh said most of the ministers had opposed the move when it was discussed during the May 4 Cabinet meeting.
“It was for this reason that another Cabinet meeting became necessary,” he said, adding that the proposal to engage RECPDCL as the distribution franchisee will have a huge negative impact on the MeECL.
“We want the government to take measures to revamp and improve the overall functioning of the MeECL. The decision to lease it out will not be the right move,” Lyngdoh said.
Health and Family Welfare Minister, Alexander Laloo Hek said the MDA partners are in agreement that the MeECL needs to be revamped.
“Our party is against this decision. We cannot take a decision which is against the interest of the people,” Hek said.
Stating that the Power Department needs to set things right, the BJP legislator said he was not convinced with the clarification given to engage a distribution franchisee in the MePDCL.
JSU slams government move – sub head
The Jaintia Students’ Union (JSU) has also opposed the government’s proposal to engage a distribution franchisee for two profit-making distribution circles in the MePDCL.
In a letter written to the Chairman-cum-Managing Director of MeECL on Monday, JSU general secretary, Treiborlang Suchen sought to know the logic behind the government’s move.
He questioned why the insertion of the additional clause “budgetary support” is only for Meghalaya and not to any other states that are also availing the Atmanirbhar/Abhiyan Loan.
“It is known that the Central government is offering this relief package for the distribution companies to relieve the financial stress of the generating companies where the DISCOMs have outstanding payments to be paid with mandatory directives of having a loss reduction plan,” the JSU general secretary said.
He further said, “The government should instead consider reducing the AT&C lose of areas in East & West Garo Circles before availing the loan which are having the worst infrastructure and has been resulting in the MePDCL losing most of its revenue. Also, the additional clause budgetary support which has led to engagement of distribution franchisee is unnecessary as it would lead to the complete sellout of MeECL to REC.”
The JSU pointed out that despite having to pay huge interest from the loan grant, the move to bring these circles as distribution franchisee of REC is absurd and is a foul play to help private parties to loot profits from the MeECL.
“This sellout plan whereby the REC is able to sub-contract to private companies is unacceptable. It will render current employees, especially those under contractual appointments, to lose their jobs,” Suchen said.
He said it will also deprive the local youth of their ability for jobs at MeECL since employment will be as per the sole prerogative of REC or the sub-contractor.
