Meghalaya Cabinet approves NTPC power dues payment of Rs 565 crore
A proposal for paying Rs 565 crore in NTPC power dues has been approved by the Meghalaya Cabinet
The proposal to pay the National Thermal electricity Corporation (NTPC) its outstanding electricity bills in 20 installments of Rs 565 crore was agreed by the Meghalaya Cabinet on Wednesday, according to Power Minister AT Mondal. The state cabinet, led by Chief Minister Conrad K. Sangma, adopted the Meghalaya Power department's proposal.
Speaking with reporters, Mondal stated that the department has sent the NTPC for negotiations following a rise in electricity bills to Rs 665 crore. Should the arrears be permitted to persist, they will eventually surpass Rs 1,000 crore, posing a strain on the Meghalaya Power Distribution Corporation Limited (MePDCL), Meghalaya Energy Corporation Limited, and the state government.
Declaring that the MeECL is not financially stable, Mondal stated, "The state government has determined that NTPC would receive this sum of Rs 565 crore.
"NTPC agreed that we may now pay them Rs. 664 or 665 crore following discussions and negotiations. Thus, that was a relief, but this sum needs to be paid in about 20 installments," he stated, adding that NTPC had consented to waive off more than Rs 100 crore and that there was now a chance to cut the interest rate as well, he further added.
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