PPA with NTPC, faultiest says Tynsong

SHILLONG, APR 4: Deputy Chief Minister in-charge Power Prestone Tynsong on Monday termed the Power Purchase Agreement (PPA) signed by then Congress-led government with the National Thermal Power Corporation (NTPC) as the “faultiest agreement” made so far in the state.

 

“I have never seen in my life the most faulty agreement signed between the state government and the NTPC which I personally feel is not at all logical, not at all economical,” Tynsong told reporters.

 

According to him, the PPA was signed at the rate of Rs 6 per unit in 2007, at a time when supplying of power to the people of the state was not even Rs 4 per unit.

 

Stating that the recent order of the Government of India to the NTPC to reallocate power of 53 out of 87 megawatt meant for Meghalaya to Tamil Nadu was a big achievement, Tynsong said the state government can now save a lot instead of paying Rs 120 crore annually to the NTPC for the power it did not draw.

 

“I am sure from now on till five years, we are relieved instead of investing to NTPC we will be able to improve our power distribution in the state,” he said.

 

He said the PPA with NTPC was signed in 2007 for drawing 87 MW of power to meet the requirement of the state.

 

“But due to the high cost per unit, right from 2015-16, the Meghalaya government did not draw power from NTPC but still we have to pay the fixed charge annually at the rate of Rs 120 crore,” Tynsong said while adding “We have continue paying NTPC up to 2018 which amounting to over Rs 1,000 crore plus.”

 

Tynsong said the matter was also taken up before a tribunal.

 

“…I am telling you it is so dangerous. I don’t know who signed and when did they sign – It is in the tribunal that is why we challenge the agreement. So right now I cannot say anything as it is in the hands of the tribunal,” he said.

 

For the remaining 34 MW, the deputy chief minister said that the state government will pursue with the Government of India to reallocate the same to other states.

 

“I am sure the Government of India will help us out,” he said.

 

Tynsong also informed that the issue was also taken up during the meeting of the North Eastern Regional Power Committee (NERPC) headed by Nagaland Chief Minister at Guwahati on March 28.

 

“We took a resolution in the NERPC to request the Government of India to reallocate the entire allotted energy through NTPC to other states in the country,” he said.

By Our Reporter

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