Collection efficiency touches 100%, technical & commercial losses decline
Shillong, Aug 30: A steady turnaround is happening in the state’s power sector, if figures revealed by Comptroller and Auditor General (CAG) are anything to go by.
The sector has witnessed operating losses narrowing sharply, collection efficiency touching 100% and technical and commercial losses declining amid sustained investment in Meghalaya’s electricity network.
The combined operating loss of the state’s power companies fell from ₹387 crore in 2021-22 to ₹209 crore in 2022-23—a reduction of nearly 46%, according to CAG analysis.
The four power companies’ return on capital employed also improved from minus 11.7% to minus 5.8% during the period.
The improvement is significant because nearly 90% of the state government’s capital invested in public sector enterprises is concentrated in the electricity sector.
The power companies – Meghalaya Energy Corporation Limited (MeECL), Meghalaya Power Distribution Corporation Limited (MePDCL), Meghalaya Power Generation Corporation Limited (MePGCL), and Meghalaya Power Transmission Corporation Limited (MePTCL) – were created by unbundling the erstwhile Meghalaya State Electricity Board (MSEB) in 2010.
They are responsible for supplying electricity across the state’s difficult hill terrain, including remote and sparsely populated areas, at tariffs determined by the independent State Electricity Regulatory Commission.
The Power Finance Corporation’s 2023-24 assessment recorded 100% collection efficiency for MePDCL.
It also placed Meghalaya among the states that succeeded in reducing aggregate technical and commercial losses.
In the Union Power Ministry’s national rating exercise, MePDCL was also among only two electricity utilities in its category to secure full marks under one of the assessment parameters.
The ongoing reforms and infrastructure upgrades are supported by the Asian Development Bank-financed distribution project and the Centre’s Revamped Distribution Sector Scheme.
The state government co-funds these projects, and the amounts appear in the state accounts as investments in public enterprises.
Meanwhile, the government has also addressed the long-pending liabilities of Mawmluh Cherra Cements Limited (MCCL).
The PSU, which had remained profitable for 18 years until 2006-07, subsequently ran into financial trouble following a failed modernisation project documented by the CAG in 2019.
The government closed the company in 2023 and settled dues owed to its employees and suppliers.
An amount of Rs 44.71 crore was released in 2024-25 for the final settlement of those liabilities.
