Cabinet permits MePGCL to avail Rs 173.11 cr loan from financial institutions

Shillong, Sept 7: The Meghalaya Cabinet, on Monday, approved the revised cost estimate for Ganol Stage-I Small Hydro Project at an amount of Rs 507.71 crores and State Development Loan at Rs 50 crores. The Ganol Stage – I is a 22.5 Mega Watt Hydro Project.

Cabinet also allowed MePGCL to avail a loan for 173.11 crores from financial institutions and to increase the borrowing limit of MePGCL for the purpose.

Power Minister James Sangma informed that during the meeting the finance department made suggestions regarding the funding and loans.

“The interest in repayment of the SDL loans will have to be made by the MeCL and to ensure regular payment of loan a redemption reserve fund of 10 years has to be created. This account has to be operated jointly by MeCL and the finance department of the government of Meghalaya,” Sangma said.

He added that the Planning Department also had conditions including completion of the Ganol Hydro Project by September 2022 and that the project should be monitored by the High Powered Committee.

“The High Powered Committee under the Chairmanship of the Chief Secretary which was formed to monitor the performance of MePGCL and MeCL and to ensure that the long term loan of 1345 crores, to be availed by MePGCL against state government guarantee, is regularly repaid and the project management unit of technical experts be created under the Planning Department,” Sangma reiterated.