Wednesday, December 11, 2024
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Tynsong hopeful of MeECL turnaround in terms of profit

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SHILLONG, Jan 2: Revamping the power distribution system with a capital outlay of over Rs 2,500 crore will help Meghalaya Energy Corporation Limited (MeECL) become a profitable organisation in the state, Deputy Chief Minister Prestone Tynsong, who is also in charge of Power department, said on Sunday.
A detailed project report (DPR) with the proposed capital expenditure (capex) was approved by the state cabinet on December 21 last year to strengthen the power distribution system in the next five years.
The project was planned under the Revamped Distribution Sector Scheme (RDSS) of the Union Power Ministry and the Centre has sanctioned Rs 3 lakh crore for states, of which Meghalaya has proposed to submit the DPR of over Rs 2,500 crore, he said.
“Once the project takes place, we will be able to make sure that MeECL becomes a profitable organisation in the state. Over Rs 2,500-crore DPR has been prepared and approved by the cabinet. Now we are sending it to REC, which will then forward it to the Ministry of Power for its nod,” Tynsong told PTI.
The Union Ministry of Power had launched the Revamped Distribution Sector Scheme with an objective to improve the operational efficiencies of state-owned power companies by providing financial assistance.
According to the programme, 90 per cent of a project cost will be given by the Centre and 10 per cent will be borne by the state concerned, he said.
“We want to upgrade the substations which are not catering to the people of Meghalaya. Through this scheme, we will augment the capacity of the substations and that of transformers. It will help MeECL become a profitable organisation,” Tynsong, who is also in charge of the state power department, said.
The deputy chief minister stated that once the installation of smart meters will be completed, the revenue leakage will be plugged up to 200 per cent.
According to him, a large number of smart meters would be required to be installed at over 4.60 lakh households.
“Such devices have already been installed at not less than 30,000 households in the state,” the minister said.
The Centre has requested the state government to complete the installation of smart meters by March 2023, Tynsong said.
Earlier, Chief Minister Conrad K Sangma, while announcing the decision of the state government to implement the RDSS, has said this would be one of the biggest projects to be taken up by the authorities as over Rs 2,500 crore would be invested to improve the power distribution system. (PTI)

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