SHILLONG: In a pivotal decision, Meghalaya's state cabinet, presided over by Chief Minister Conrad K Sangma, has granted approval to a proposal to settle the National Thermal Power Corporation's (NTPC) pending power dues, amounting to Rs 565 crore. A.T. Mondal, the state's power minister, revealed that this substantial sum will be disbursed over 20 installments, providing a financial lifeline to the state's energy sector.
The Meghalaya Power Department initiated this proposal, primarily due to mounting concerns as the power dues surged to an alarming Rs 665 crore. Mondal expressed his apprehension that if these arrears continued to accumulate, they could swiftly surpass the Rs. 1,000 crore mark, imposing an insurmountable burden on various entities, including the Meghalaya Power Distribution Corporation Limited (MePDCL), Meghalaya Energy Corporation Limited (MeECL), and the state government.
In response to this imminent financial crisis, the state government, in collaboration with NTPC, engaged in negotiations to devise a viable solution. These dialogues culminated in an agreement where NTPC consented to accept a reduced payment of Rs 565 crore instead of the original Rs 664 or Rs 665 crore. This concession from NTPC alleviates the looming fiscal strain on Meghalaya. Furthermore, NTPC also displayed benevolence by waiving off over Rs 100 crore from the dues. Additionally, there are prospects for a reduction in the interest rate on the remaining balance.
Mondal emphasized the precarious financial situation of the Meghalaya Energy Corporation Limited (MeECL), citing this as the primary reason behind the state government's decision to facilitate the payment of Rs 565 crore to NTPC. Discussions are ongoing, with an open-minded approach from NTPC concerning the timeline for repayment. The hope is to negotiate for more favorable installment terms to alleviate the financial burden on Meghalaya's energy sector.
This significant decision represents a proactive step by the state cabinet to stave off a potential energy crisis in Meghalaya, protecting the interests of both the state government and the public. The approved settlement not only ensures the survival of critical energy providers but also maintains stability in the state's power distribution, securing a vital lifeline for the people of Meghalaya.
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