Shillong, Aug 14: Meghalaya Cabinet, on Friday, approved Rs 1345.72 crore loan to Meghalaya Power Distribution Corporation Limited under the Atma Nirbhar Bharat Abhiyan Scheme announced by the Government of India.
Speaking to reporters, Cabinet Minister in charge of Power James Sangma said that the loan has been approved with certain conditions.
A High Powered Committee would be formed to monitor the performance of the MePDCL, he informed. The committee will monitor two major sector reforms to bring down the AT & C losses and to reduce the gap of ACS and ARR.
It will also oversee the additional industry sale and additional exchange sale of power through which the MePDCL could earn additional revenue, he added.
“The HPC (High Powered Committee) would meet every month and make recommendations to board of MeECL towards achieving the targets,” he said.
The Power Minister said that the MePDCL has a very huge outstanding against power purchase dues payable to the Central Power Generating Stations and also to PGCIL and that the revenue collection is being adversely affected due to COVID-19.
“There has been a notification by the GOI wherein it has announced that the Atma Nirbhar Bharat Abhiyan Scheme will infuse liquidity to distressed discoms in the form of loans backed by a state government guarantee to clear liabilities of the gencos and transcos,” he said.
He stated that the scheme would extend special long term transition loans up to 10 years to discoms on certain conditions.
“These conditions under which Meghalaya would qualify was namely for discoms that do not have receivables from the state government or available under the working capital limits imposed under UDHAY, the states may request the GOI for relaxation of the borrowing limit,” Sangma said.
He informed the proposal placed before the Cabinet was to avail the assistance restricted to 1345.72 crores under the Atma Nirbhar Bharat Abhiyan Scheme and to enhance the borrowing limit of MeECL by Rs 1345.72 crores for purpose, on and above, its existing borrowing limit of Rs 2500 Crore.
The State Government will give a guarantee for the loan and obtain approval from the Ministry of Power, GOI for the relaxation of the borrowing limit of the MeECL as restricted under UDHAY to avail the proposed loan.
“With this amount, MePDCL would be able to clear all its outstanding dues” he stated adding that MePDCL would also be requesting 60% waiver of delayed payment of charges.