Decision on handing over some distribution circles to REC PDC by next week

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The Meghalaya Democratic Alliance government will take a final call on whether to take responsibility for payment of the over Rs 1,345 crore loan for the MeECL or handover the management of some of the distribution circles to the  Rural Electrification Corporation Power Distribution Company (REC PDCL) by next week.

“The state Cabinet will again sit on Wednesday to take a final call on the matter after examining all aspects,” Chief Minister Conrad K Sangma told reporters after chairing a cabinet meeting on Friday.

“We will take a decision on whether it will be appropriate for the state government to take the entire burden of the loan and pay to bail out MeECL or do we look at a system where we allow some professionalism coming in without harming the structure of MeECL, without harming the employees…,” he added.

This also came a day after seven MLAs from Jaintia Hills region have expressed their strong opposition against the government’s move to privatize the Meghalaya Energy Corporation Limited (MeECL) by outsourcing the distribution circles to companies from outside the state.

Stating that it is a crucial issue, Sangma said the state Cabinet will spend the next four-five days looking at all options that are there and take all stakeholders on board for discussion to improve the efficiency of the MeECL.

“The question is about Rs 560 crore of revenue that the government of Meghalaya will have to give additionally to (pay the loan) bail out MeECL,” he said.

Stating that there has been no agreement signed for outsourcing the distribution circles of the MeECL to REC PDCL yet, Sangma said the government is still examining the pros and cons on how to move forward.

He however clarified that the agreement if it is to go forward is only a “management contract” adding “..it is not giving out any kind of lease or assets to anybody (as alleged).”

The chief minister also informed that initially when the issue was discussed, the power minister James K Sangma and officials from the power department and MeECL have expressed opposition to the idea of going for distribution franchisees (DFs).

“MeECL does not want to give any of its circles, and the power department and power minister don’t want to give any of these circles for DFs they want to run it by themselves,” he said, adding “we have asked the power department to give us all the options that are available.”