The cabinet meeting led by Chief Minister Conrad Sangma, the Meghalaya state government has decided to settle the pending power dues amounting to Rs 565 crore owed to the National Thermal Power Corporation (NTPC) through a 20-installment plan.
The move comes amid negotiations initiated by the Power Minister AT Mondal, as the dues were on the verge of escalating to an alarming Rs 1000 crore, posing a significant financial burden.
Initially, the state had availed the Atmanirbhar loan and successfully paid off 50% of the accumulated dues, which were Rs 488 crore. However, with the remaining Rs 244 crore accumulating further, the total sum escalated to Rs 665 crore. To avoid the debt from mounting, the cabinet has approved the proposed settlement plan put forth by the power department.
Under the agreed terms, the state will make 20 consecutive payments of Rs 565 crore to the NTPC, effectively resolving the longstanding dues issue and easing the financial strain on the power sector.