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Govt scraps power project deals with two companies

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SHILLONG, April 20: The state government on Wednesday cancelled the memorandum of agreements (MoAs) of the 270 MW Kynshi Stage-I and the 325 MW Kynshi Stage-II hydroelectric projects signed with Athena Power Private Limited and JayPee Group, respectively.
Power Minister, Prestone Tynsong, who is also the Deputy Chief Minister, said the decision was arrived at after a review meeting where both companies expressed their inability to execute the projects.
“We had invited all private developers as well as central government undertakings with whom we had signed the MoAs way back in 2007, 2008 and 2009 to the review meeting. In some projects, the developers expressed their inability to continue and surrendered as they (projects) were not economically feasible for them,” Tynsong said.
According to him, the Kynshi Stage II was not feasible as the belt touches uranium deposits. The same was observed by the developers as well as the Ministry of Forest and Environment. Based on it, the company surrendered and the MoA was cancelled, he said.
He said the MoA, signed with SM Ltd Guwahati for the 15 MW Upper Khri Stage-I hydroelectric project and 10 MW Upper Khri Stage II hydroelectric project, is also likely to be cancelled.
“We will take a call as they have expressed their inability to continue. If the MoA with them is cancelled, we will decide if these projects can be revived or given to new parties,” Tynsong said.
Asked what made the company to go ahead when the uranium deposits were detected years ago, he said these are private developers and when they sought clearance from the Ministry of Forest, Coal and Mines, the latter had observed that the belt touches the uranium deposits.
He insisted the study should be conducted by the companies themselves as this is a self-identified project, which means they identify, invest and take clearance from the state government.
Tynsong said as regards the MoA signed with NEEPCO, Shillong for Wah Umiam Stage-III signed in 2012, the process of land acquisition is going on in full swing. Once it is completed, the deputy commissioner will hand over the land followed by the commencement of the project, he said.
On Umiam Stage-I (50 MW) and Stage-II (100 MW), he said the department is in the stage of finalising the agreement. Once finalised, it will be taken up with the Cabinet for the signing of the MoA.
Stating that NEEPCO had signed an agreement in 2011 for a thermal power project (500 MW) in East Garo Hills, he said documentation and paperwork are on. Once this process is over, the project will be started.
Talking about some small power projects such as Longumare and Umran, Tynsong said the MoA is in the final stage. After the cabinet approves it, the final agreement will be signed.
He further said the NEEPCO will continue with Wah Umiam Stage-III (85 MW), Wah Umiam Stage-I (50 MW) and Wah Umiam Stage-II (100 MW).
He said the state government is coming up with Leshka Stage-III and the engineers and the technical experts are preparing the details.
On Leshka having to deal with the water turning acidic and destroying the structures, he said the National Green Tribunal has already closed down coal mining in Meghalaya and if allowed, highly-mechanized system will be in place.
Stating that many individuals and miners have applied for mining lease and are preparing mining plans in accordance with the MMDR Act, Tynsong said once they get the mining lease, the problem of waste and acidic watering can be stopped with the help of technology.

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