Meghalaya cabinet today approved the cancellation of the Memorandum of Agreement (MoA) signed with MS Sew Energy Limited in 2010 for 65 megawatts Rangmaw Hydel Power project.
“The cabinet today has agreed to cancel the MoA signed between the state government and the company,” Deputy Chief Minister, Prestone Tynsong told reporters after the meeting.
He said the company had requested the government to cancel the agreement due to the unfeasibility of the project.
When asked, Tynsong said, of course, penalty clauses are there but that time in 2010, the (then) state government had hurriedly signed the agreement with the private company adding however when this company started the groundwork, it found that the project was not feasible at all.
“Even the present state government has also seen that the project is not feasible as these are purely private investments…so ultimately we consider cancellation of the agreement,” he said.
Meanwhile, the deputy chief minister informed that the power department will soon float a fresh expression of interest (EoI).