Guwahati: The state cabinet has approved a proposal to clear Rs 565 crore pending power dues of the National Thermal Power Corporation (NTPC).
A.T. Mondal, power minister of the state said that the dues will be cleared in 20 installments,.
The proposal of the Meghalaya Power Department was approved by the state cabinet which was chaired by Chief Minister Conrad K Sangma.
Talking to media persons, Mondal said that the department has called the NTPC for negotiation after the power dues rose to Rs 665 crore.
If the dues were allowed to grow more soon it would cross Rs. 1,000 crore and create a burden for the Meghalaya Power Distribution Corporation Limited (MePDCL), Meghalaya Energy Corporation Limited (MeECL) and also for the state government.
“After negotiation and meetings, they (NTPC) agreed that now we can pay them Rs. 565 crore instead of Rs. 664 or Rs. 665 crore. So we got relief from that point of view but this amount should be paid in around 20 installments,” he said, adding that NTPC has agreed to waive off over Rs. 100 crore and there is now a possibility of lowering the interest rate as well.
The power minister also stated that the MeECL is not financially sound.
“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 in 20 installments or we can have some relaxations as far as installments are concerned so that our installment burden also reduces,” he added.