Shillong, Oct 18: The state government will clear Rs 565 crore pending power dues to National Thermal Power Corporation (NTPC) in 20 installments.
This was decided in the cabinet meeting chaired by Chief Minister Conrad Sangma on Wednesday.
Speaking to reporters, Power Minister AT Mondal said the department has moved the NTPC for negotiation after the power dues rose to Rs 665 crore, which if allowed to continue would cross Rs 1000 crore and create a burden.
After the negotiation and frequent meetings, the NTPC agreed to the amount of Rs 565 crore instead of Rs 665 crore but this should be paid in 20 installments, he said.
The power minister said earlier the state government had availed the Atmanirbhar loan and cleared 50% of the accumulated power dues of Rs 488 crore to NTPC.
“Out of Rs 488 crore, we have paid Rs 244 crore and remaining Rs 244 crore now became Rs 665 crore, this amount will continue to go up and up and thereby to avoid this situation, the cabinet has been kind enough to agree to this proposal of the power department,” he said.
“NTPC was charging quite high in terms of fixed charges. We had approached them for reduction in interest and fixed charges but ultimately it did not materialise. After that we have even moved to the court of law but then as this agreement was executed in letter and spirit even the court has not given a favourable verdict in favour of us,” he said.
