Meghalaya to set up Meghalaya Energy Efficiency Limited, a special purpose vehicle

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During along cabinet meeting on Monday, the state cabinet approved a total of six proposals. 

Amongst the various decisions taken by the cabinet, one such decision that the state Cabinet approved on the setting up of a special purpose vehicle – Meghalaya Energy Efficiency Limited (MEEL) under the state power department.

 Speaking to reporters after the meeting, Chief Minister Conrad K Sangma said this is being done as one of the power sector reforms, which the Government of India (GOI) has mandated all the state governments to do.

 “This will have two purposes and two effects. Number one energy efficiency is the subject that is of key importance today in the power sector. Therefore, to have an agency, a company, a special purpose vehicle, to look into the aspects of efficiency is needed and hence the MEEL has been formed,” he said.

 He said the other part of this reformation is that GOI has laid down conditions to all the state governments that to avail the additional 2 percent loan factor from the banks, which is 5 percent of GSDP of the states.

 According to him, the two percent additional amount which GOI has agreed has been on the condition of implementation of one nation one ration card, the ease of doing business reforms, the urban local body utility reforms, and power sector reforms.

 “Therefore, by doing this reform and by achieving higher efficiency in the energy sector which would ultimately help the overall energy sector in the state, we are also creating this reform which will enable the government to access the additional debt ceiling the government of India has given to all the state governments in the country,” the chief minister stated. EOM