Cabinet decides to seek fresh MoAs on 4 hydel projects SHILLONG: Bowing to prolonged public outcry, the MPA Cabinet on Thursday abrogated two major deals on three power projects that, it said, were inked by the former Congress-led Government with different private firms in violation of the State Power Policy. The government also decided to go for fresh MoAs with the other parties on four hydel power projects. The deals scrapped by the government include those entered into with Athena Project Private Limited on Kynshi Stage I and Jay Pee Group on Umngot and Kynshi Stage II. The investment in these three hydro-power projects was supposed to be more than Rs 6,000 crore, and the combined capacity is 1100 MW. The decision of the Donkupar Cabinet may come as a welcome news for various organisations that spearheaded the anti-power deal movement, but it could make the government face legal and economic consequences involving over Rs 6000 crore. Interestingly, the government decision to partially shelve the power pacts ran contrary to the recommendation of the MPA Parliamentary Party for scrapping all the MoAs on power projects signed by the previous MDA Government with six private companies. "The decision to scrap the deals was taken after studying the official committee report. The report clearly indicates that there was last-minute manipulation by the previous government to amend certain clauses of the State Power Policy for signing MoAs with the two private companies," Power Minister Conrad K Sangma told newsmen after the Cabinet meeting here on Thursday. He said the deals with Athena Project Private Limited and Jay Pee Group were not done through international competitive bidding as per the norms of the State Power Policy. He said the majority of Cabinet ministers felt that the deals signed with Athena Project Private Limited and Jay Pee Group were against the interests of the State. "We fully realise that the State will face major legal and economic consequences after scrapping of the deals. We will lose about Rs 6000 crore plus another Rs 200 crore in the form of free power share that the State was supposed to get from the three power projects," Mr Sangma said. Referring to the possible consequences of his government's latest decision, the Power Minister said it could affect the GDP growth of Meghalaya, adding the State might not see any improvement in the power scenario for the coming five to seven years. "With the State getting very bad monsoon, there were would be more sessions of load-shedding in the coming years" he said. Mr Sangma also said the State Cabinet had decided to prepare new MoAs for four hydel power projects below 100 MW each -- Umduna, Umjaut, Simsang Basin and Leshka Stage II. "The parties that were roped in to develop these projects would have to re-negotiate the MoAs with the State Government. If they refuse to accept this condition, the deals reached with them would also be scrapped," he said. According to the minister, the decision to prepare fresh MoAs on hydel projects was taken after it was felt that there was a need to review the terms and conditions in the agreements. "If the companies fail to abide by the terms and conditions laid down in the agreements, then the deals would be immediately annulled," Mr Sangma cautioned. MoAs were signed with Seven Sisters Energy Limited on Simsang Basin project, SEW Energy Limited on Leshka Stage II and ETA Star Infrastructure Limited on Umduna and Umjaut. The Cabinet felt that there is a need to re-write the MoAs with these companies as the present clauses in the agreements do not have provisions to provide maximum jobs to locals, the minister said. "We want to ensure that 80 per cent jobs in these companies, when they have taken up the power projects, are reserved for locals," Mr Sangma said. On the three thermal power projects, the Power Minister said since there was no specific provision laid down either by the Central Government or by the State Government, the thermal power projects would remain as per the earlier agreements signed by the previous government. He also said the official committee report had questioned the financial and technical capability of Dharampal Satyapal Group and Seven Sisters Energy Limited and that the Cabinet had given 15 days' time to the two companies to prove their capability. "If they fail to respond within the stipulated period, the deals with them would be scrapped," he added. It may be mentioned that Nangalbibra thermal power project has been allotted to Dharampal Satyapal Group whose expertise thus far is in pan masala trade, table salt etc. . Meanwhile, Urban Affairs Minister and KHNAM president Paul Lyngdoh, who was also a minister in the previous Congress-led Government, said he, along with three other Cabinet ministers, had written a note of dissent to the then Chief Minister DD Lapang protesting against the deals. "We had made it clear that power projects above 100MW should go through the mandatory international competitive bidding," Mr Lyngdoh said. Meanwhile, KSU and FKJGP, which had protested against the handing over of power projects to private companies, said they would meet soon to discuss the Cabinet decision. FKJGP would convene its central executive committee here on Friday to discuss the Cabinet decision to partially scrap the power deals. "We are unhappy with the Cabinet decision as it was not according to our demand for total scrapping of all the deals" FKJGP president Emlang Lyttan said while stating that his organisation would decide its future course of action on the issue after the CEC meeting.