Power overhaul mandated in state
By Our Reporter
SHILLONG, Nov 15: A scathing report by an Independent Inquiry Committee has brought to light significant deficiencies within Meghalaya’s power sector, citing a lack of competence and expertise in the Meghalaya Power Generation Corporation Ltd (MePGCL) and urging a fundamental overhaul of the Meghalaya Energy Corporation Ltd (MeECL) and its three subsidiary corporations. The report, headed by retired Justice RN Mishra and submitted in March 2022, was only recently made public on November 10.
The committee’s comprehensive investigation delved into procurement processes, Aggregate Technical & Commercial (AT&C) losses, and human resources management, revealing systemic “legacy issues” that have plagued the corporations since the unbundling of the Meghalaya State Electricity Board in 2013.
A key finding of the report points to the MePGCL’s lack of core competence in planning, designing, and executing hydroelectric projects. This deficiency is starkly illustrated by the enormous time and cost overruns of the Leshka and Ganol projects, which nullified their potential benefits. The committee asserts that harnessing Meghalaya’s vast hydro potential is crucial for the state’s economic prosperity, with the potential to make it a power-surplus state and even export electricity to neighboring Bangladesh.
The report also highlights the alarmingly high AT&C losses of the Meghalaya Power Distribution Corporation Ltd (MePDCL), which stand at around 32%, far exceeding the 22.3% target set by the Ministry of Power. While acknowledging the commendable reduction of losses to single digits in Shillong and Tura under the IPDS scheme, the committee warns that the overall high losses are “unsustainable,” especially with the anticipated rapid growth in power consumption.
The inquiry identified a major structural flaw in the current functioning of the three corporations—MePGCL, MePTCL (Transmission), and MePDCL (Distribution)—which continue to operate as a single entity in many respects, defeating the purpose of their corporatisation. Common human resources, finance, and material management departments, along with a shared board under the holding company MeECL, create conflicts of interest and hinder the development of specialised expertise in generation, transmission, and distribution.
To rectify these deep-seated problems, the committee has put forth a series of bold recommendations.
Functional Autonomy: The three subsidiary corporations must be granted genuine functional autonomy with separate, independent Boards of Directors vested with adequate financial and functional powers.
Specialised Human Resources: A shift is required from a common, transferable workforce to dedicated employees for each corporation to foster loyalty, commitment, and core competence. The report stresses the need for experts in generation, transmission, distribution, finance, and HR, recommending targeted training for existing staff and corporation-specific future recruitments.
Modernisation through IT: The committee observed a glaring absence of a fully functional IT department and strongly recommended the implementation of Enterprise Resource Planning (ERP) to improve efficiency, data management, and decision-making across all operational areas.
Clear Procurement Policies: The report calls for the establishment of comprehensive and transparent procurement policies, rules, and regulations to address existing ambiguities.
While the committee commended MeECL for its work in electrifying remote villages, a task that has significantly improved the quality of life and spurred economic activity, it emphasised that overcoming the inherited legacy issues is paramount for the long-term health and success of Meghalaya’s power sector.
The state government now faces the critical task of implementing these recommendations to ensure a stable and prosperous energy future for its citizens.
