Meghalaya Cabinet okays Power Department proposal

SHILLONG: The Meghalaya cabinet  has approved a proposal from the Power Department for extension of guarantee  to Meghalaya Power Generation Corporation Limited (MePGCL) for issuance of guarantee or bond by the State Government for the firm to avail a loan of Rs  170  crores.

It may be recalled that the Meghalaya cabinet last year had approved a proposal of the Meghalaya Energy Corporation Limited (MeECL) to raise the bond of Rs 800 crore with the state government as the guarantor to enable the MeECL to raise the bond which is to the tune of Rs 800 crore

Deputy Chief Minister, Prestone  Tynsong said that the matter pertaining to the raising of bond to Rs  800 crores to Meghalaya Energy Corporation Limited (MeECL)  last year was discussed in the cabinet   and the firm could not utilise it meaning the financial institution declined to extend loan to the corporaton

He said that the Cabinet on Monday approved to act as the guarantor for Rs  170 crores out of the bond of Rs 800 crore which was approved last year and with this decision, the bond would be reduce to Rs  630 crores for them

Tynsong informed that the amount of Rs  170 crores would be used for improving the Umtrew Power Project.

 

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