Huge power debt worries Opposition

By Our Reporter

SHILLONG, MAR 9: With Meghalaya owing more than Rs 500 crore to power distribution companies, Opposition parties today expressed apprehension that frequent power cuts would haunt the state.

Power minister Sniawbhalang Dhar informed the Assembly today that the amount due to be paid to North Eastern Electric Power Corporation Limited (NEEPCO) and other Central Generating Stations (CGS) as on March 2 this year amounts to a staggering Rs 527.07 crore.

On measures taken to clear the dues, Dhar said in December last year, MeECL has availed a government guaranteed loan of Rs 325 crore from the Power Finance Commission (PFC).

“This was paid to NEEPCO on December 21 last year as part of the one-time settlement plan for liquidation of NEEPCO dues,” he said.

He also informed that the participation in the Centre’s Ujwal DISCOM Assurance Yojana (UDAY) Scheme for operational and financial turnaround of MePDCL is under active consideration of the state government.

Raising a supplementary question, UDP legislator Jemino Mawthoh said it appeared that the problem of power cuts would continue in the state despite the government continuing to bail out the power department.

He said the state had witnessed power cuts stretching up to 8-9 hours due to inability to clear Rs 476 crore pending power dues.

Dhar said fund constraint has not enabled the MePDCL to liquidate the dues relating to power procurement. He said the fund constraint was due to low electricity distribution tariff, which is the lowest in the country. He also said the other reasons were inadequate tariff subsidy provided by the government and realization of outstanding dues from defaulters.

However, he informed that the department was taking steps to liquidate power purchase dues.

One such step was the decision of the state cabinet to take over 75% debt of the MePDCL is also one of the measures, he said.

An agreement will be signed between the Centre, State government and Discom in this regard which is expected to be completed within this year, Dhar added.