Shillong, November 3: The Asian Development Bank has approved USD 132.8 million loan to improve and upgrade the power distribution network in Meghalaya, Power Minister James PK Sangma said on Tuesday.
“Happy to announce that the @ADB_HQ has approved a loan of 132.8 mn to improve & upgrade the power distribution network in #Meghalaya. The project fully supports Meghalaya’s initiative in improving the distribution system & financial sustainability of the Department,” the power minister said in a tweet.
The Meghalaya cabinet had in August this year approved a proposal from the Meghalaya Energy Corporation Limited (MeECL) to avail a Rs 1,345.72 crore loan for clearing the power outstanding dues, on conditions that it has to bring down the aggregate technical and commercial (AT&C) losses and reduce the gap of average cost of supply (ACS) and average revenue realized (ARR).
The Meghalaya Power Distribution Corporation Limited (MePDCL) has a huge outstanding against the power purchased from central power generating stations and to the Power Grid Corporation of India Limited (PGCIL), the minister had said.
The Government of India had announced that the Aatma Nirbhar Bharat Abhiyaan (ANBA) scheme to infuse liquidity to stress discom (distribution companies) in the form of loans backed by a state government guarantee which would be given to clear the liabilities of the gencos (generation companies) and transcos (transmission companies) by the state discom.
Under this scheme, the Rural Electrification Corporation (REC) and the Power Finance Corporation would extend special long term transition loans up to 10 years to the discom on certain conditions, the minister had said. (PTI)