Shillong, September 22: The Cabinet today has approved the proposal from the power department to allow the MeECL to raise fund of Rs.800 cores by way of selling bond from the open Market. The state government will stand be the Bank guarantee for the MeECL.
Speaking to media person after the cabinet meeting, the Chief Minister Dr Mukul Sangma said that, this measure has been taken in order to allow the MeECL to liquidate the pending loan that they have to a tune of Rs 640 cores, in simple term the MeECL will take loan to repay the loan which is at the higher interest. With this the MeECL will saved 4% out of the Rs.640 cores.
The total bank guarantee that the MeECL has at present is Rs. 1174 cores, and with this cabinet approval to raise Rs.800 through bond the MeECL will have Rs.595.64 cores. The bond that the MeECL will float in the open market through National Competitive bidding and the bond will be for the period of ten years.
The financial turnaround of the MeECL for the financial year 2017-2018 is Rs 287 Cores, where the MeECL still need help to revamp it financial status to make the company move forward. Both the Central and the state has embarked with series of initiative in the power sectors particularly in rural electrification.
