SHILLONG, AUG 13: The cabinet today raised the borrowing limit of the Meghalaya Electricity Corporation Limited (MeCL) to Rs 1910 crores with a rider that the corporation must take measures to improve the “efficiency” of distribution, transmission & generation.
Meghalaya chief minister Mukul Sangma told reporters after the cabinet meeting on Tuesday, “The government has agreed to accept the proposal of raising the borrowing limit of the MeCL to Rs 1910 crores, to ensure that it can further invest and increase its earning capacity.”
The MeCL had made a presentation before the cabinet on its overall position.
The total assets of MeCL is Rs 2700 crores and Sangma said according to the laid down policies of the government a corporation is allowed to raise loan upto 70 per cent of its total assets value.
The borrowing limit of the MeCL was only Rs 800 crores earlier.
Regarding the efficiency of the MeCL Sangma informed that the government had received petition from consumers of Garo hills that the MeCL has served the electricity bills after 5-6 months. He said this becomes difficult for the consumers to pay and it is not a good scenario for the MeCL when it has to purchase power every month from NEEPCO and others.
Stating that the liabilities payable by the MeCL has been mounting, Sangma said that the actual revenue realized by the MeCL and the actual expenditure has substantial gap. As a result of this many of the financial agencies who are forthcoming in giving credit to MeCL are quite reluctant and, therefore the government could not raised any credit from them, he added.
Informing that many issues were discussed during the meeting, he said we have observed that all the three entities for distribution, transmission, and generation under the MeCL are link to the actual huge gap between the actual realization of revenue and the projected realization of revenue.- By Our Reporter
+ There are no comments
Add yours