SHILLONG, Nov 4: The Meghalaya government on Wednesday cancelled it’s agreement signed with M/s Sew Energy Limited to implement the 65 mw, Rangmaw Hydel Power project.
This decision to cancel the agreement was approved by the cabinet.
Speaking to reporters after the cabinet meeting, deputy chief minister, Prestone Tynsong informed that the company who signed the agreement now stated implementation of the power project was “economically unfeasible.”
The memorandum of agreement with the M/s Sew Energy Limited was signed in 2010.
Tynsong said that after cancellation of the memorandum of agreement with the previous party, the Power department will float fresh Expression of Interest.
On whether there was any penalty against the company who decided to withdraw from the agreement, Tynsong said, such clauses were there in 2010 but the then “government hurriedly signed an agreement with Sew Energy Limited.”
According to the deputy chief minister, when the company started their ground work they found out that the project was not feasible at all.
“The present government has also seen that it was not feasible. But you can’t help it the MoU has been signed and ultimately we considered cancellation of the MoU and fresh EoI will be floated,” he added.