Over Rs 2,500 cr capex to make Meghalaya power utility profitable: Minister – EQ Mag Pro

Shillong : Renewing the energy distribution system with a capital investment of more than Rs 2,500 crore will help Meghalaya Energy Corporation Ltd (MeECL) become a profitable organization in the state , Deputy Chief Minister Prestone Tynsong said on Sunday. On December 21 last year, the state cabinet approved a detailed project report (DPR) with the proposed capital expenditure (capex) to strengthen the energy distribution system over the next five years.

The project was planned under the scheme of the renewed distribution sector (RDSS) of the Ministry of Energy of the Union and the Center has sanctioned Rs 3 lakh crore for the states, of which Meghalaya has proposed to present the DPR of more than Rs 2.5 billion, he said.

“Once the project is completed, we will be able to ensure that MeECL becomes a profitable organization in the state. The cabinet has prepared and approved a DPR of more than Rs 2.5 billion. We are now sending it to REC, which will then will send it to the Ministry of Energy for acceptance, “Tynsong told PTI.

The Union Ministry of Energy had launched the renewed distribution sector scheme with the aim of improving the operational efficiency of state-owned electricity companies by providing financial assistance.

According to the program, 90% of the cost of a project will be borne by the Center and 10% will be borne by the state concerned, he said.

“We want to upgrade substations that do not serve the people of Meghalaya. Through this scheme, we will increase the capacity of substations and transformers. It will help MeECL become a profitable organization,” said Tynsong, who is also part of the group. head of the state power department, he said.

The deputy minister said that once the installation of smart meters is completed, the revenue leak will close to 200 percent.

According to him, a large number of smart meters would have to be installed in more than 4.60 lakh homes.

“These devices have already been installed in no less than 30,000 homes in the state,” the minister said.

The Center has asked the state government to complete the installation of smart meters in March 2023, Tynsong said.

Earlier, Chief Minister Conrad K Sangma, while announcing the state government’s decision to implement the RDSS, said that this would be one of the largest projects to be undertaken by the authorities, as more than 2,500 would be invested. million rupees to improve power. distribution system.

Source : PTI