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Panel opposes subsidies to industries

Sentinel Digital DeskBy : Sentinel Digital Desk

  |  2 May 2015 12:00 AM GMT

A Correspondent

Shillong, May 1: The opposition Fact Finding Team (FFT) which did an in-depth study on the power scerio in the State has recommended that the State government to stop giving blanket subsidies to industries operating in the State.

The FFT team said that in most cases the units have misused the subsidies.

According to the FFT, the industrial power demand is more than 55 percent of the total unrestricted demand.

The pending industrial demand is around 102 MW.

“The Government is granting free or subsidised power supply to industries when they are not all contributing to the development of the State,” the report said.

According to the report of the FFT, an RTI finding revealed the failure of at least 19 existing industrial units in Ri Bhoi district to clear the power dues amounting to over Rs.76 crore to MeECL.

The report said that the high pending dues add up to the ibility of the corporation to clear its dues to NEEPCO and others.

“It appears that there are serious lapses to check such irregularities. Why no such measures have been initiated to collect the huge outstanding dues?” the report stated.

According to the FFT report the MeECL should focus on augmenting its revenue collection by ensuring that all industrial and commercial units are made to pay their arrears within the stipulated time.

As per the report, the percentage of consumption of industries in Meghalaya which is 59 percent of the total consumption is the highest in Northeast.

The report also said that the MeECL has not been able to collect revenue as per the as per direction from Meghalaya State Electricity Regulatory Commission (MSERC).

The report said that the ibility of the MeECL to reduce the transmission and distribution loses by 3 percent every year as directed by the MeSERC has been one of the main reason for the widening gap between its income and expenditure.

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