Despite the existence of a leading public power utility, Energy Efficiency Services Ltd (EESL) which is successfully implementing the smart meter programme in the country under the BOOT model on cost plus contract, the Conrad Sangma government instead chose to establish a new company with Meghalaya Electricity Corporation Ltd (MeECL) as a member.
On October 12, 2020 the State cabinet had approved the setting up of a special purpose vehicle – Meghalaya Energy Efficiency Limited (MEEL) under the Power Department.
Raising quite a few eyebrows, State Power Secretary was made Managing Director of MEEL and the Power Minister James Sangma along with Arunkumar Kembhavi, the Chairman and Managing Director of MeECL and four others were directors.
James Sangma had recently justified the fact that a junior officer was holding the top position, by saying that he along with Kembhavi were only ex-officio directors like in any other company. He had further clarified that the formation of MEEL was to optimise energy efficiency in the State on the lines of EESL.
Ironically however, Sangma failed to justify why instead of opting for a tie up with EESL which would have meant an almost free handout of the project to cash strapped Meghalaya, he chose instead to tie up with a relatively unknown firm, use a software for billing that has never been tried and tested in the power domain billing process and take a loan and grant of US$ 134,800,000 from the Asian Development Bank for smart metering project in the State.
Why didn’t the government opt for the mission mode model with EESL which would have been almost free of cost and instead take a loan and encumber itself further? No one seems to have an answer to that, at least from the government or the minister and his trusted lieutenants for that matter.
On December 1, 2020, the same Power Secretary inked two agreements with the top international financial institution on behalf of the State government. The loan gave US$ 132,800,000 to MeECL through the State and US$ 2,000,000 was assured to the corporation as an ADB administered grant from the Japan Fund for Poverty Reduction again through the State.
Shortly after that, on February 12, 2021 the MeECL Board of Directors approved implementation of the smart metering programme.
A barrage of tenders to find the chosen one with the onerous responsibility of making Meghalaya the first smart state in the country in digital power billing began when it was first floated on the Meghalaya e-tender website on February 4, 2020.
What followed was a series of six extensions in just four months, the first being on April 21, 2020 and the sixth on July 3, 2020. The tender was opened on July 3, 2020 at 3 pm.
There were four bidders in all. They included Goodwill Enterprise, Satnam Global Infraprojects Ltd (Lead Partner), JPM Industries and Inhemeter Co. Ltd as joint venture partners, Gupta Power Infrastructure Ltd (Lead Partner) and Zenmeters Solution Pvt. Ltd (Joint Venture) and La Monte Enterprise & Toshniwal Electrical Works.
After a hurried selection process, the bidders, one by one were “rejected on flimsy grounds or citing needless shortcomings” and the work was finally allotted to Satnam Global Infraprojects Ltd (Lead Partner) and JPM Industries and Inhemeter Co. Ltd as joint venture partners at a contract price of Rs 232,96,39,344.10.
Satnam Global Infraprojects Ltd came into prominence in the MeECL circles after the formation of the present MDA Government.
The LOA (Letter of Acceptance) to Satnam Global Infraprojects Ltd was then issued vide order No. MePDCL/CE(P)/T-191(Pt-1)/EKH/2020-21/05 dated 16th February, 2021 and signed by P P Kar, Superintending Engineer (Projects) of MeECL.
Sources reveal that till date; the company has received mobilisation funds of Rs 5 crore besides Rs 38 crore out of the additional Rs 72 crore for the allegedly untried billing software.
Currently Satnam Global Infraprojects Ltd is storing all its stock and barrel in in MeECL facilities/premises in Shillong and Tura even as curiously, the corporation is on the verge of leasing out a large chunk of its land to JPM Industries Limited (a joint venture partner of Satnam Global Infraprojects Ltd) for setting up a manufacturing unit of electrical products.
It was reported that the Director of Corporate Affairs, MeECL had written a letter to the Director of Commerce and Industries Department on June 10 for leasing out MeECL land to JPM Industries Limited, Haryana for “setting up a factory to manufacture products such as smart meters, LED lighting, solar products and automotive parts” while arguing that “this will in turn generate employment in the State”.
The Industries Department was further requested to intimate whether any statutory clearances and NOCs from any State government department/s have to be obtained or submitted by the intended lessee to enable the MeECL to expedite the matter.
Sources further revealed that the whole game was a well thought of plan and had it not been for conscientious and loyal employees opposing it tooth and nail, it would have sailed through unnoticed until it was too late.
“I believe the MEEL was created to acquire a ‘Third Party’ transfer of the contract from RECPDCL which has signed an MoU with MePDCL (Meghalaya Power Distribution Corporation Limited) appointing it as the exclusive distribution franchisee of the corporation,” explained another senior official who was totally exasperated at what is going on in the corporation.
The official pointed out to an interesting component in the MoU which is a provision that has been neatly inserted in Sub Clause 4.4 which clearly states that “The distribution franchisee may appoint sub-contractor(s) for outsourcing some of its activities with a prior seven days written intimation to the MePDCL”.
The agreement further allows RECPDCL full control of sale and supply of electricity in the Central and Eastern Circle of MePDCL which in layman terms means the entire Khasi and Jaintia Hills only, leaving Garo Hills out.
Rounding up the official further revealed that a key individual instrumental in this whole affair was none other than the former Chief Engineer (Projects) Upendra Nath Madan who retired in October 2020 even as efforts to extend his term were scuttled by alert employees associations at the last minute.
Known for his political leanings towards any ruling dispensation as witnessed in the previous government, when according to senior colleagues, Madan tried to warm up and be a lap dog of the then Chief Minister Dr. Mukul Sangma but failed.
Not to give up on not being granted an extension, Madan indirectly got his way through however, and last week he was appointed as Chief Technical Adviser of Power Department at a pay equivalent to the last post he held minus pension.
