Government carrying out many moves to reform Power sector during pandemic: James Sangma

SHILLONG: The State Government, in pursuance of its objective for the resolution of pending issues in relation to the supply and transmission of power within Meghalaya has been taking several decisive steps, stated a press release from the team of State Power Minister JamesSangma.

It added that the State Government has identified that huge expenditure has been incurred from the State exchequer towards capacity charges being demanded by the NTPC ( National Thermal Power Corporation Limited) under the 'Power Purchase Agreement' (PPA) of 2007.

''Upon detailed examination of the same, it was observed that several crores of rupees were being demanded by the NTPC under the mentioned PPA, even though the State Government had surrendered its entire allocation under the said PPA in 2015 itself. The State was also not drawing on its allocation of power from NTPC as the cost of power per unit was higher than prevailing market price; and therefore, the continuation of the PPA had become unviable, unnecessary, and burdensome on the State exchequer and did not serve any gainful purpose.

''On April 15, 2021, when the country was in the middle of the second wave of the deadly COVID-19 pandemic, the NTPC raised a demand to clear an amount of Rs 416.72 crores; of which, Rs 294 crore was demanded to be paid in April 2021 itself. The NTPC further intimated to the MeECL (Meghalaya Energy Corporation Limited) that in case the said amount was not paid, then the LoC (Letter of Credit) of an amount of Rs18 crores (approximately), submitted by the MeECL would be invoked and forfeited immediately.''

The press release added, ''In the opinion of the State Government, none of the amounts demanded by NTPC are due and payable to it and the continuation of the PPA is not warranted. Therefore, the State Government, through MeECL took decisive steps and terminated the PPA by a notice dated April 16, 2021.''

The State Government also took immediate steps to approach the District Commercial Court, Shillong on April 22, 2021 seeking urgent stay against the action of NTPC. That despite the threat of the COVID-19 pandemic, the Court Bench presided upon by Commercial Judge, N.A. Khan conducted physical hearing in view of the extreme urgency and in view of the great public interest involved in the matter added the press statement.

The State Government was represented by Advocate General Amit Kumar, Senior Advocate SibasisSen and assisted by advocates Chetan Joshi and Arkin James K. SangmaKharwanlang. The Court passed an order of status quo in favour of the State Government on April 22, 2021 and the invocation of the LoC was averted. Thereafter, the NTPC preferred an application for vacation of the stay order. However, the stay was not vacated and continues till date, pointed out the statement.

The NTPC again, by its letter dated May 4, 2021 notified MeECL that since dues are not paid, regulation of power would be done from May 11, 2021 onwards in the State of Meghalaya. In the present circumstances of growing COVID-19 cases, a decision to regulate power and subject the State to long power cuts would be disastrous and would seriously impact the fight against COVID-19. Therefore, the Government of Meghalaya immediately approached the Commercial Court,Shillong presided upon by Commercial Judge N.A. Khan again on May 7, 2021 seeking stay of the decision of NTPC to regulate power supply in Meghalaya. On that day, despite enforcement of strict lockdown in East-Khasi Hills District, looking into the urgency of the matter, the Court, again conducted a physical hearing. The hearing was also attended physically by Advocate General Amit Kumar, Senior Advocate SibasisSen and advocate for the Government of Meghalaya, ArkinKharwanlang. The NTPC was also represented by its counsel.

''Upon hearing the matter for almost two hours, the Court granted stay of the notice of NTPC dated May 4, 2021 thereby averting possibility of power cuts in the State from May 11, 2021.

In the above manner, the Government of Meghalaya is consistently making earnest endeavours to resolve the issues being faced by the Power sector in the State.

It is also actively exploring all avenues for reforming this vital sector in the interest of the public, added the press statement.

Also Read: Minister James Sangma clarifies on MeECL power-bidding status

Also Watch: Man killed on the spot in road accident at Biswanath