Meghalaya Govt cancels MoA signed for Kynshi, Khri projects

Syllad | The Rising MeghalayaApril 20, 2022

The state government on Wednesday cancelled the Memorandum of Agreement (MoA) signed with private developers for implementation of four power projects which include Kynshi stage-I & II hydroelectric projects due to the presence of uranium.

After chairing a meeting, Deputy Chief Minister in-charge Power Prestone Tynsong informed that he had reviewed the MOA signed with the private developers and central government PSUs since 2007 till recently.

“We have decided to cancel the MoA signed  with M/s Athena Kynshi Power Private Limited for implementation of Kynshi stage-I hydroelectric project (270 MW) and with Jaypee Meghalaya Power Ltd, New Delhi for Kynshi stage-II HE project (325 MW) – after they have expressed their inability to continue with the projects,” he said.

The MoA signed with M/s SM ENERGENCO Ltd, Guwahati for implementation of the Upper Khri Stage-I (15 MW) and Upper Khri Stage-II (10 MW) also stand cancelled. The two projects are technically not viable due to high cost, Tynsong added.

Asked the reason for the decision, the deputy CM said as far as Kynshi stage-II is concerned, it was mainly due to the presence of uranium deposits adding “the question of proceeding forward with the project does not arise”.

Stating that the private developer had blindly signed the MoA without doing proper homework on the feasibility of the project, he said, “Now I have already discussed with my senior officers of the department that those people who wanted to invest and come to develop power project in our state be it hydro, solar or wind or whatever, they need to do their homework first.”

Meanwhile, the deputy CM further informed that the government has decided to go ahead with the implementation of several projects to address the power shortage in the state.

He said the MoA signed with the North Eastern Electric Power Corporation Limited (NEEPCO) for implementation of the Wah Umiam stage-III of 85 MW is now in an advance stage. The project was earlier named as Mawphu HE project.

“Land acquisition now is in full swing. Once the land acquisition is completed, the concerned district collector will hand over the land and then the project will start,” he said

Tynsong also informed that the government is in the process of finalizing the MoA for Umiam stage-I (50 MW) and Umiam stage-II (100 MW).

“Again NEEPCO has already signed a MoA in the year 2011 relating to a thermal power project of 500 MW in East Garo Hills. This also the documentation is on and I am sure very soon they will be able to complete this documentation and paperwork and all and once that is completed, we will start the thermal project,” he said.

On small hydro projects, Tynsong informed that agreement for  Nongummer small power project (24 MW) and Umran small power project (13.5 MW) signed with M/S Varks – AVCO JV, Hyderabad and M/s JMD Aqua Private Ltd Delhi respectively is under process.

“Now the MoA is in the final stage and I will take it to the cabinet for its approval and we will sign the final agreement with these two companies for setting up small hydro power projects,” he added.

Tynsong informed that once these projects are completed, the state will have surplus power supply.

“At present, the power requirement in Meghalaya is about 650 MW of which our own generation is around 300 MW. Therefore, there is a deficit of power of not less than 350 MW,” he said.