SHILLONG, FEB 24: The Meghalaya Energy Corporation Limited (MeECL) has a total loan outstanding amount of Rs 2015.75 crore, with 72% of it not allowed in tariff.

Informing this while replying to a cut motion in the Assembly on Tuesday, power minister Metbah Lyngdoh said, “The MeECL as on date has a total loan outstanding amount of Rs 2015.75 crore. Out of which loans pertaining to MeECL bonds amounting to Rs 630 Crore, PFC Atmanirbhar loan amounting to Rs 423.55 crore and REC Atmanirbhar loan amounting to Rs 393.34 crore are not allowed in tariff. The total amount of such loans constitutes 72% of total outstanding debt of the Corporation.”

Lyngdoh attributed the corporation’s increased losses in 2022-23 and 2023-24 to two major difficulties.

“Firstly, Meghalaya’s electricity demand is complementary to the rest of India, with peak demand in winter months. MePDCL’s banking agreements with other states settled transactions in energy only, with no monetary benefit to the state,” he said.

“Secondly, regulatory hurdles impacted the DISCOM’s financials, as the tariff allowed by the Regulatory Commission was not cost-reflective and had arbitrary disallowances,” Lyngdoh added, highlighting the challenges faced by the corporation.

Lyngdoh also highlighted the steps taken by Meghalaya Power Distribution Corporation Limited (MePDCL) to address financial challenges, while replying to a cut motion in the Assembly.

“From October 2023, MePDCL stopped swapping or banking transactions and opted to trade surplus power in the market to generate revenue and reduce power purchase expenses for consumers,” Lyngdoh said.

The corporation also made timely payments for power purchase to avoid delayed payment surcharges.

MePDCL successfully convinced the Regulator to address tariff issues in FY 2024-25, resulting in reduced losses of Rs 35 Crore.

“The result of these efforts can be seen from the fact that in FY 2024-25 the losses have reduced to Rs 35 crores. In 2025-26 we are also confident that this performance will be continued,” Lyngdoh said.

The minister cited legacy issues, including delayed financial turnaround of DISCOM due to absence of Operational Funding Requirement, with a funding gap of Rs. 1165 Crore under UDAY MOU. “These issues are being settled,” he added, seeking continued support for MeECL.

Also Read: MePDC: doubles transformer repair capacity with Rs 2 Cr investment

Also Watch

Find latest news from every corner of Northeast India at hubnetwork.in, your online source for breaking news, video coverage.

Also, Follow us on

Twitter-twitter.com/nemediahub

Youtube channel- www.youtube.com/@NortheastMediaHub2020

Instagram- www.instagram.com/ne_media_hub

Download our app from playstore – Northeast Media Hub