Cabinet approves Power Department proposal to stand guarantor for the Rs 630-crore project

A Correspondent

SHILLONG: The Cabinet on Monday approved the proposal of the State’s Power Department to stand guarantor for the Rs 630-crore bond floated by the Meghalaya Energy Corporation Limited (MeECL).

Informing media persons, State Power Minister, James K Sangma informed that out of the capital raised from the market through the bond, MeECL would write off some of its “high-interest bearing loans” taken from the Power Finance Corporation and also pay some of its debt to the North Eastern Power Corporation Limited (NEEPCO).

It may be mentioned that the State presently owes NEEPCO Rs 550 crore.

Sangma stated that out of the Rs 630 crore worth of bond floated by the MeECL some of it will be used to pay off some of its debt.

Meanwhile, on the issue of loading shedding that the State Government has taken up due to power regulation, the Power Minister urged the citizens of the State to bear the inconvenience.

Hoping that in the near future the power scenario in the state will improve, Sangma said, “We are trying to repay to the NEEPCO as much as possible.”

Apart from this the Meghalaya cabinet also approved the enhancement of grant-in-aid to morning/night schools under the Deficit system.

Sangma informed that there are 15 such schools all over the state.

“For deficit schools which has classes 9 and 10 we have decided to raise the grant-in-aid to Rs 20, 000 and for schools which has classes from 6 to 10 we are enhancing the grant-in-aid to Rs 40, 000,” the Minister said.

Also read: Meghalaya news