The Meghalaya Cabinet announced on that it had approved a proposal to settle the pending power dues of the National Thermal Power Corporation (NTPC), amounting to Rs 5.65 billion, in 20 instalments, according to AT Mondal, State Power Minister. The proposal put forth by the Meghalaya Power department had received approval from the state cabinet, which was presided over by Conrad K Sangma, Chief Minister.
Mondal revealed that the department had initiated negotiations with NTPC after the outstanding power dues escalated to Rs 6.65 billion. Allowing the dues to persist would have led to a further increase, possibly crossing Rs 10 billion, placing a significant burden on the Meghalaya Power Distribution Corporation (MePDCL), Meghalaya Energy Corporation (MeECL), and the state government.
He stated, "Following negotiations and several meetings, NTPC agreed to accept a reduced payment of Rs 5.65 billion instead of the initially demanded Rs 6.64 or 6.65 billion. We have gained some relief in this regard. However, this amount will be disbursed in approximately 20 instalments." Additionally, he mentioned that NTPC had agreed to waive off over Rs 1 billion, and there was a potential reduction in the interest rate.
Mondal emphasised the financial instability of MeECL, saying, "This is why the state government has resolved to pay the sum of Rs 5.65 billion to NTPC."
