Meghalaya state government today agreed to take over the Rs 125 crore debt of MePDCL to pave way for signing of a tripartite agreement for availing Centre's funding to create an overall turn around of MePDCL.
"We have agreed to take over the 75 per cent debt of the Meghalaya Power Distribution Corporation Limited (MePDCL) which is calculated up to September 30, 2015. The total outstanding debt is Rs 125 crore," Chief Minister Mukul Sangma told journalists after a cabinet meeting held here today.
He informed that the decision was taken to enable the signing of a tripartite agreement between the Centre, State government and the MePCL, which would take place within month.
According to him, the agreement is to allow funding under the initiatives of Centre's Ministry of Power which include facilitation of receiving of priority funding through DDUGJY, IPDS, PSDF and various other schemes.
"It is to facilitate these benefits which will help the MePDCL to strengthen its transmission and distribution network which is expected to create a turn around by bringing down the losses of the company," Sangma said.
The Chief Minister further informed that the cabinet was also briefed about the measures to be taken by the MePDCL to ensure its Aggregate Technical & Commercial Losses (AT&CL) is brought down besides stabilizing the tariff.
"The AT&CL revolves around 36.5 per cent which is around Rs 150 crore annually, needs to be brought down with complete sincerity and seriousness by improving billing and collection efficiency so that the company will be able to create turn around," he said.
He stated that this is one of the conditions to enable the state to avail the support system and few other funds under various programmes of the Government of India.
Stating necessary directions were also given by the cabinet, Sangma said that the MePDCL is also asked to take number of measures which include looking at the management of purchase and sale of power in a much professional manner.
"The whole concept of corporatization or unbundling the MeECL to different entities - generation, transmission and distribution companies was conceptualized to ensure each are able to operate and function as real corporate bodies and ensure their respective turn around," he added.
The state government has further directed the MePDCL the need to sourcing power at a cheaper rate to ensure the burden of cost is not passed on to the consumers.
The Chief Minister also informed that all departments will also be asked to replace the existing bulbs with LED bulbs besides utilizing the existing Community Service Centers (CSCs) across the state for payment of electricity bills.
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