The approval was given by the MDA Government to engage a distribution franchisee for two profit-making Distribution Circles in Meghalaya is likely to endanger the future of Meghalaya Energy Corporation Limited (MeECL).
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 Meghalaya Energy Corporation Limited (MeECL).
The meeting approved to implement the proposal for engagement of an outside enterprise known as REC Power Distribution Company Limited (RECPDCL) as the distribution franchisee in Meghalaya Power Distribution Corporation Limited (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 Jowai both urban and rural areas.
Under the approved proposal, 25 per cent of the total area of operation of MePDCL would be handed over to RECPDCL. The company will provide electricity to every household in the two Distribution Circles including billing and revenue collection, all operation and maintenance, consumer support and care.
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.
The progress and data processing required to be handed over to RECPDCL is going on in full swing.
Under the terms and condition of this contract, RECPDCL can further sub-contract this franchisee to any other party.
“Such was the blatant disregard by these people at the helm of affairs who could strike a deal when the entire State is weeping. The meeting was held on April 23, 2021 and the proposal to sell off the most profitable areas of MePDCL was also taken on the same day,” a senior engineer of MePDCL said on condition of anonymity.
Another official of MeECL termed this decision of the State government as a “sell out”.
“It can be understood that the idea for this sell out is preconceived and predetermined and in no doubt stinks of conspiracy otherwise how one would decide to hand over two most profitable areas of MeECL to a franchisee in a single day. To make things simple, even an amateur entrepreneur would not sell or lease his most profitable enterprise to any outside party as long as he is getting favourable and profitable returns from his business,” the official said.
The revenue derived from the two Distribution Circles are the ones that help run MePDCL as the consumer’s participation and cooperation is applaudable in terms of consumers paying their electricity bills is the most responsive (highest), where billing efficiency is around 98 per cent and revenue realisation is the highest.
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 questionable.
It may be mentioned that MePDCL has a number of Distribution Circles where the losses are around 78 per cent to 80 per cent but such areas are ignored and the management of MePDCL is not keen to improve infrastructure and sensitise the consumers in these regions to cooperate and pay their electricity bills and stop power theft.
Power Minister James Sangma during the last Assembly Session had categorically stated in the floor of the House about the poor revenue returns from Garo Hills and that billing efficiency in Chokpot is only 12 per cent and ATC losses reaching a staggering figure of around 70 per cent to 80 per cent.
“If the ministers attending the meeting on April 23, 2021 feel that such a sell out would bring benefits to MeECL or to the State then they should have offered the areas under their constituencies first. Why offer the sell out to areas under the constituencies of other MLAs whose constituents are paying their bills regularly and bringing benefit both to MeECL and the State,” an employee of MeECL said.
Employees falling under these two Distribution Circles numbering around 2000 are now unsure of their future since they may have to opt whether to stay with MePDCL or go on deputation to RECPDCL. Also, those who have another 15 years of active service would be compelled to take compulsory retirement. All contractual employees would be terminated or thinned down.
Moreover, the future recruitment of engineers, skilled and semi-skilled will be under the prerogative of RECPDCL. This will have an adverse impact on local qualified engineers of the State as they will be denied the opportunity to be recruited by MeECL and this will add to rising cases of unemployment in the State.
