Shillong, June 8: The heated debate on the proposed leasing out of the distribution circles and management of Meghalaya Energy Corporation Limited (MeECL) reached a crescendo on Tuesday, a day before the cabinet sits to decide on the matter.

Meghalaya Power Minister, James K. Sangma along with the Chairman of MeECL called on the Chief Minister, Conrad K. Sangma at his official residence in Shillong on Tuesday to urge him to give 100 percent budgetary provision for the Rs. 1345 cr Atmanirbhar loan and not accede to the request of REC-PDCL for distribution franchisees.

After the meeting, the Chief Minister, through a video statement, said the REC-PDCL has put in the conditions for the Atmanirbhar loan to be sanctioned in the second tranche for the distribution franchises.

At the same time, he informed that the CMD, MeECL and the Power Department have held several discussions in the past three to four months regarding the issue of giving 100% budgetary support for the Rs. 1,345 Crore loan.

But when this condition was put in the Finance Department, they were of the opinion that the State Government and the Finance Department should not take the entire burden of this loan and some part of it should also be put on MeECL’s shoulders and hence the Finance Department proposed that at least 25% of this loan repayment amount should be in some way or the other incorporated into the overall improvement and efficiency of the MeECL. And that is where the REC proposed that certain distribution circles can be then given for management to the REC.

Speaking on the pros and cons of this leasing, he said, “On the positive side, if the government decides to give the entire guarantee for the loan, the distribution franchises will not be given but the negative side of this is that, if that were the case, then the government has to pay additional Rs. 580 Crores in the next 10 years. If we (Government) go ahead with this, some of the circles will be given to REC for management, but at the same time, the finance pressure will be lesser.”

Terming the discussion with the power minister as positive, he said if the Finance Department agrees to give full budgetary provision then MeECL also has to agree to certain terms and conditions on how to improve the overall efficiency of the Corporation.

However, the final decision on this heated issue will be taken on Wednesday at the cabinet at 12.30 PM.