Meghalaya Govt Scraps MoU to Build Rangmaw Hydel Power Project


The Meghalaya government cancelled it’s agreement to implement the 65-MW, Rangmaw Hydel Power project.

This decision to cancel the agreement was approved by the cabinet.

The then Congress Government in the State had signed the MoU with Sew Energy Limited in 2010 to build the 65-MW Rangmaw hydel power project.

Speaking to reporters after the cabinet meeting, deputy chief minister, Prestone Tynsong informed that the company who signed the agreement now stated implementation of the power project was “economically unfeasible.”

The memorandum of agreement with the M/s Sew Energy Limited was signed in 2010.

Tynsong said that after cancellation of the memorandum of agreement with the previous party, the Power department will float fresh Expression of Interest.

After the cancellation of the project, the State is left with 14 projects at different phases of implementation. The combined capacity of these power projects is 1594.05 MW.

On whether there was any penalty against the company who decided to withdraw from the agreement, Tynsong said, such clauses were there in 2010 but the then “government hurriedly signed an agreement with Sew Energy Limited.”

According to the deputy chief minister, when the company started their ground work they found out that the project was not feasible at all.

“The present government has also seen that it was not feasible. But you can’t help it the MoU has been signed and ultimately we considered cancellation of the MoU and fresh EoI will be floated,” he added.

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