MeECL’s total outstanding loans stand at Rs 2,015 cr ** Losses reduced to Rs 35 crore in FY 2024-25
Shillong, Feb 24: Unpaid loans taken by Meghalaya Energy Corporation Limited (MeECL) under various schemes amounting to a total of Rs 2015.75 crore constitute 72% of the outstanding debt of the Corporation.
Informing this in reply to a query in the assembly on Tuesday, Power Minister Metbah Lyngdoh said, “The MeECL as on date has a total loan outstanding amount of Rs 2015.75 crore out of which loans pertaining to MeECL bonds amounting to Rs 630 crore, PFC Atmanirbhar loan amounting to Rs 423.55 crore and REC Atmanirbhar loan amounting to Rs 393.34 crore are not allowed in tariff. The total amount of such loans constitutes 72% of total outstanding debt of the Corporation.”
The minister attributed the corporation’s increased losses in 2022-23 and 2023-24 to two major difficulties.
“Firstly, Meghalaya’s electricity demand is complementary to the rest of India, with peak demand in winter months. MePDCL’s banking agreements with other states settled transactions in energy only, with no monetary benefit to the state,” he said.
“Secondly, regulatory hurdles impacted the DISCOM’s financials, as the tariff allowed by the Regulatory Commission was not cost-reflective and had arbitrary disallowances,” Lyngdoh added, highlighting the challenges faced by the corporation.
The minister also highlighted the steps taken by Meghalaya Power Distribution Corporation Limited (MePDCL) to address financial challenges, while replying to a cut motion in the Assembly.
“From October 2023, MePDCL stopped swapping or banking transactions and opted to trade surplus power in the market to generate revenue and reduce power purchase expenses for consumers,” Lyngdoh said.
The corporation also made timely payments for power purchase to avoid delayed payment surcharges.
“The result of these efforts can be seen from the fact that in FY 2024-25 the losses have reduced to Rs 35 crore. In 2025-26 we are also confident that this performance will be continued,” Lyngdoh said.
The minister cited legacy issues, including delayed financial turnaround of DISCOM due to absence of Operational Funding Requirement, with a funding gap of Rs 1,165 crore under UDAY MOU.
“These issues are being settled,” he added, seeking continued support for MeECL.
