SHILLONG, Nov 09: The Meghalaya Energy Corporation Limited (MeECL) can now borrow as much as Rs. 2,500 crores by way of loans after the state cabinet enhanced its borrowing limit.
“We have decided to enhance the borrowing limit of the MeECL from Rs 1,910 crore to Rs 2,500 crore,” Chief Minister, Dr. Mukul Sangma informed here on Thursday.
Dr. Sangma said that certain budgetary support and bank guarantee that the state government extended to the MeECL is linked with its ability to become efficient, increase revenue earning and become sustainable.
Stating that with MeECL incurring losses, a number of initiatives are required to be taken, Dr. Sangma however said that if the state government continues on extending grants, the company would not become capable.
On shortcomings in the MeECL including its inability to complete power projects on time, Dr. Sangma said that there were various factors that made the company incapable including the delay to complete projects.