The State cabinet today scrapped the agreements on two power projects – the 450 MW Kynshi Stage-I and Upper Khri Stage I and II after they were found to be financially unviable.
The two hydro power projects were signed by the government of Meghalaya with private power developers a few years ago.
The Memorandum of Agreement (MOA) for Kynshi power project was signed with Athena Projects Pvt Ltd on BOOT basis on December 11, 2007, while the Upper Khri Stage I and II were signed in 2012-13 with SM Energenco Ltd.
“Because of the financial non-viability of these projects and the rates coming up too high and also the time taken by the different companies to implement them, the decision was taken by the cabinet to terminate both these projects,” Chief Minister Conrad Sangma said.
He also informed that the State government will immediately move to look for new partners or maybe the same partners but in a new format because the projects in their current form are not viable in terms of the rates.
Referring to the new technologies being employed in power generation where pump storage and other facilities can be used and also the combination of water being released from one project and being used downstream for another project like in the case of Upper Khri Stage I and II, he said the projects also need to be changed.
“Hence, the government and the department will immediately work in that aspect and we hope that very soon we will be able to have the expression of interest to move forward with these projects in its new form,” Sangma said.
Further, the chief minister explained that the major reason for the termination of contract for Kynshi Stage-I project was the delay on the part of the company to execute the work on time.