Meghalaya government has decided to clear Rs 565 crore pending power dues to National Thermal Power Corporation (NTPC) in 20 installments.
The decision proposed by the power department was approved by the State Cabinet chaired by Chief Minister Conrad K Sangma on Wednesday.
Addressing the media, Power Minister Abu Taher Mondal said the department has moved the NTPC for negotiation after the power dues rose to Rs 665 crore, which if allowed to continue would soon cross Rs 1000 crore and create a burden for the Meghalaya Power Distribution Corporation Limited (MePDCL) vis-à-vis Meghalaya Energy Corporation Limited (MeECL) and also to the State government.
“Accordingly, after the negotiation and frequent meetings, they (NTPC) agreed that now we can pay them Rs 565 crore instead of Rs 664 or 665 crore. So we got a relief from that point of view but this amount should be paid in around 20 installments,” he said while adding NTPC has agreed to waive off over Rs 100 crore and that there is now a possibility of lowering the interest rate as well.
Stating that the MeECL is not financially sound, Mondal said, “That is why the State government has decided that this amount of Rs 565 crore will be paid to NTPC.”
“We are still negotiating and NTPC is open minded on whether this will have to be returned within these 20 installments or we can have some relaxations as far as installments are concerned so that our installment burden also reduces. So we want once the cabinet decides then they will give that scope so it may go to 30 or we will push something more also so that there is no more interest in that and we clear these dues from NTPC and get clean as far as NTPC dues are concerned,” he added.
The power minister informed that earlier the State government had availed the Atmanirbhar loan and cleared 50% of the accumulated power dues of Rs 488 crore to NTPC.
“Out of Rs 488 crore, we have paid Rs 244 crore and remaining Rs 244 crore now became Rs 665 crore. (Therefore, if there is no negotiation) this amount will continue to go up and up and thereby put us into a financial crisis also. (To avoid this situation), the cabinet has been kind enough to agree to this proposal of the power department,” he said.
According to him, the situation had arisen due an agreement signed between the government and NTPC in 2007.
“NTPC was charging quite high (in terms of) fixed charges. We had approached them for reduction in interest and fixed charges and all these things and ultimately it did not materialize. After that we have even moved to the court of law but then as this agreement was executed in letter and spirit even the court has not given a favourable verdict in favour of us,” he said.
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