Shillong, Feb 24: The state-owned Meghalaya Energy Corporation Ltd (MeECL) has outstanding loans of more than Rs 2,000 crore, Power Minister Metbah Lyngdoh informed the Assembly today.
Informing this while replying to a cut motion, 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 percent of the total outstanding debt of the corporation.”
The situation has improved slightly since the low point of 2022-23 and 2023-24, with the Meghalaya Power Distribution Corp Ltd (MePDCL) opting to trade surplus power to generate power and reduce power purchase expenses for consumers. The state-owned utility also made timely payments for power purchases to avoid delayed payment surcharges. Tariffs were also raised in 2024-25.
“The result of these efforts can be seen from the fact that in fiscal year 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 Power Minister informed the house that the state entered into a tripartite deal under UJWAL DISCOM Assurance Yojana (UDAY) between the central government, state government and MePDCL in March 2017.
As per the agreement, the state government committed to extending financial support to MePDCL until the distribution company achieves a turnaround.
As per the Clause 1.2 (j) of the deal, the state government was required to provide support to MePDCL through ‘Operational Funding Requirement’ but, until 2021-22 there had been no funds provided, with the shortfall amounting to Rs 1,165 crore.
