Despite strong opposition from all quarters including from within the ruling MDA Government, State Chief Secretary M S Rao has signaled that the government is going ahead to hand over franchise of two power distribution circles of Khasi Hills and Jaintia Hills to REC Power Distribution Company Limited (RECPDCL).
A letter from Rao to Union Power Secretary Alok Kumar on June 1 gave urgent financial instructions to clear the way for the takeover of Shillong Central Distribution Circle and Eastern Distribution Circle by RECPDCL. The two circles presently are part and parcel of Meghalaya Power Distribution Corporation Limited (MePDCL).
Rao highlighted the urgency of their move by pointing out that the Chairman and Managing Director of Meghalaya Energy Corporation Limited (MeECL), Arunkumar Kembhavi is camping in Delhi hoping to sign the agreement with RECPDCL and hand over a part of MePDCL to the company within a week.
This is easily the most controversial plan of the Conrad Sangma led government which will be like handing over the family heirloom to unscrupulous moneylenders.
It has become a public spectacle with the issue dividing not only the ruling politicians but the State bureaucracy as well.
Just recently, the Commissioner and Secretary, Law Department had dashed off a letter to the Power Department raising serious legal loopholes in the clauses of the intended agreement clauses.
Going against the legal wisdom, Rao didn’t even pause to give it a polite hearing and caution his political bosses, most particularly, the chief minister.
It is learnt that several MLAs have gathered enough courage to revolt against this selling off of the State’s biggest company, MeECL, in bits and pieces.
From the Chief Secretary’s letter it seems clear that the State government has decided to hand over certain circles (areas of operation) of the MePDCL to the RECPDCL.
But can the State government take such a huge step involving massive structural changes to the MeECL without due consultation with the stakeholders?
And what about the cabinet? Obviously, it is not a cabinet decision as several MLAs of the ruling coalition have publicly voiced their opposition to giving parts of the State power corporation to outside entities.
It may be recalled that on April 23, a meeting was chaired by Chief Minister Conrad Sangma and was attended by Power Minister James Sangma and other officials of the State government and MeECL.
The meeting approved to implement the proposal for engagement of an outside enterprise known as RECPDCL as the distribution franchisee in MePDCL.
In line with this meeting, MeECL Chairman and Managing Director, Arunkumar Kembhavi wrote to the Secretary, Power Department on the same day and proposed Shillong Central Distribution Circle and Eastern Distribution Circle for engagement of distribution franchisee with an injection of nearly 25 per cent of the entire State.
Shillong Central Distribution Circle covers the entire Shillong areas and adjoining areas under East Khasi Hills District. Eastern Distribution Circle covers the entire Jaintia Hills. It was also learnt that the two distribution circles have been proposed to be leased out to RECPDCL for a period of 25 years from the date of execution of the contract.
Under the approved proposal, RECPDCL will provide electricity to every household in the two distribution circles including billing and revenue collection, all operation and maintenance, consumer support and care.
The two distribution circles are the most profitable in the State. In fact, the pay and perks to the entire employee of MeECL is met from the revenue generated from these two distribution circles.
The Aggregate Technical & Commercial (ATC) losses incurred from these two circles is only 12 per cent which is way below the national average of 16 per cent. So the handing over of these two circles to RECPDCL is likely to endanger the future of MeECL and its employees.
