Shillong, Oct 18: With Meghalaya’s power dues threatening to reach a massive figure of Rs. 1000 crores, Meghalaya government on Wednesday 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.

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.

He also informed that after the negotiation and frequent meetings, the NTPC agreed to waive-off around Rs. 100 crores and Meghalaya now has to pay Rs 565 crore instead of Rs 664 or 665 crore, which should be paid in around 20 installments.

He further acknowledged that MeECL is not financially sound, and that government had to step in to bail out the home-grown power corporation.

“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,” 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.

Read: MCA picks Meghalaya squad for BCCI Women’s U-19 T20 Trophy

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