The Meghalaya government had to avail of a Rs 1,345.72 crore loan to bail out the Meghalaya Energy Corporation Ltd (MeECL) as it was on the verge of collapse due to mismanagement during the Congress era, Power Minister James Sangma said in the Assembly today.
When questioned by Rangsakona MLA Zenith Sangma of the Congress on whether the state could afford the added debt repayment burden, James replied that the MeECL was on the way to becoming a non-performing asset because of the legacy the Congress had left after it was deposed from power in 2018.
The minister assured the house that the burden of the loan will not be passed onto consumers. Meghalaya has to repay the loan at 9.5 percent interest.
As an example of the alleged mismanagement under the Congress, James stated that the previous government had committed itself to pay terminal benefits of Rs 840 crore to MeECL employees but then reneged on this, forcing the utility to cough up the money from its own resources.
He further said that under the current government, billing efficiency has increased to 72 per cent from 62 per cent and will increase further once smart meters are introduced. Transmission and distribution losses will also reduce with the installation of the new meters, the minister claimed.
