Power is a critical infrastructure for the socio-economic development. Efforts at accelerating the rate of economic growth in the new globalize economy dependent on the availability of adequate, reliable and quality power at competitive rates. Therefore, the basic responsibility of the “Electricity Industry” is to provide adequate power at economical cost, while ensuring reliable and quality supply.

Development of power industry is essential for the sustainable development of the country. The Govt. of Meghalaya is committed to this onerous task and is doing its best to develop the hydro power potential and the thermal power potential in a phase manner in synchronization with the requirement.

Exploitation of the hydro, thermal and non-conventional potential can make Meghalaya State one of the prosperous States in the country. Growth in the Electricity Industry in the State will provide adequate, reliable and quality power at competitive rates to the consumers of the State to match with the new globalize economy. The revenue from trading and royalty would provide necessary inputs for other developments in the State.

It is an undisputable fact that there exist an immediate need for a thermal power plant to provide the much needed base-load power which will tide over the present power deficit situation in the State. The problems associated with inter and intra State transmission network needs to be addressed simultaneously.

Recognizing the environment pursuant to the enactment of Electricity Act 2003, the Government of Meghalaya is committed to reform its power sector and encourage private investment in generation, transmission and distribution taking into consideration the constraints on budgetary resources.

The salient features of the state Power Policy are enumerated below:

1. To make available reliable and quality power on demand at affordable rates, while ensuring that the State could support the same through its power policies.
   
   
2. To immediately develop thermal power generation in the State for meeting the immediate requirement and also to provide the much needed thermal – hydro mix.
   
   
3. To immediately improve the Extra High Voltage (EHV) connectivity of the State with the NE region for improving the present situation of drawal and evacuation of power.
   
   
4. To achieve a continuous and steady development of power projects as per requirement of the State, a four pronged strategy has been adopted by way of participation of State, Joint, Central and Private Sectors. This participation shall be through open bidding and least cost of power generation shall be the decisive criteria.
   
   
5. To attract private investment in power sector by laying down investor friendly incentives, in view of the constraints of limited financial resources available with the State Government.
   
   
6. To make power sector a major source of revenue for the State by way of allotting the projects on Build, Own, Operate & Transfer (BOOT) and thereafter the projects will revert back to the State Govt. free of cost. Royalty shall be charged in the shape of free power during that period.
   
   
7. To generate and ensure employment opportunities to bonafide Meghalayans even if power projects are handed over to Independent Power Producers (IPP), which includes Central, State agencies as well.
   
   
8. An opportunity for Self identified projects by IPP, apart from those projects which have already been identified by Government sector/organisations, may be given on their own and also to prepare PFR/ DPR on the same. Such IPP’s may submit an application/ suo moto proposal to the Government, after which Govt. may allot such projects after due consideration and the IPP shall be asked to sign an MOA with Govt. for development of such projects. The State Government shall develop a Model MOA and implementation agreement accordingly. Such MOA shall be similar to other MOA projects, but additional time shall be given to the IPP to enable preparation of DPR for a period not exceeding 24 months after allotment of site.
   
   
9. River basins wise development may exist in the State where projects have been identified on a stand alone basis, with impact on down stream projects not having been taken into consideration fully. If an IPP can reconfigure the projects on a specific basin bringing about better utilization of resources, such IPP may make such consolidated proposal for the consideration of Government. Such project will be evaluated at par with Self Identified Projects, keeping in mind the amount of power likely to be generated in totality and the anticipated environmental impact. If such projects are considered by Government, the same may be allotted for which purpose the IPP may be asked to enter into an MOA with Govt.
   
   
10. For the purpose of allotment of projects in a transparent manner the MOA will be signed on a case to case basis through the help of experts/ consultants who will frame the parameters for selection.
    
    
11. IPP’s are required to commit at least 1% of the project cost as mentioned in the DPR for social development/ welfare programs for the benefit of the local community in and around the project site which shall be administered by a Committee as mentioned at Chapter-V Clause (vii).
    
    
12. To protect the ownership and water usage rights of local people.
    
    
13. To address the problem of ecological imbalance and environmental degradation by adopting suitable remedial/ mitigating measures at the cost of the project.
    
    
14. reference shall be given to locals and bonafide Meghalayans to develop Power in the State. Meghalayans in this context will mean a person(s) or a company incorporated under the Companies Act 1956, where the share holdings by the local tribals will be prescribed and at least one of the Directors of the Board should be a local resident of the State of Meghalaya.
    
    
15. To achieve electrification of all villages and rural households through schemes of the Central Government and to electrify the remote and inaccessible areas through Non-Conventional sources of energy.
    
    
16. In order to expedite the project selection process and so as to facilitate the smooth implementation of this policy, the State Govt. will constitute an Empowered Committee under the Chairmanship of the Minister i/c Power and such other members drawn from different Departments as may be notified by the Govt. with the following functions:
    
    
    1. To determine the norms and procedure for selection of developers and other types of allottees of power projects within the policy parameters.
       
       
    2. To finally select the developers of Power Plants of categories below 100MW of Hydel projects under this policy.
       
       
    3. To approve the terms and conditions of the MOA’s, Implementation Agreement/ Letter of Allotment and other such documents as specified which are required to be executed by the State Govt. and the concerned developers.
       
       
    4. To consider and approve the incentives, monetary or otherwise, which may be made available to developers under this policy.
       
       
    5. To suggest amendments to the policy as may be considered necessary.
       
       
    6. To undertake a periodic review of the implementation of projects.
       
       
17. In order to expedite process of selection where a competitive bidding of hydro projects above 100 MW, a Cabinet Committee will be set up for finalization of the allotment of such projects.
    
    
18. The state Government will facilitate the establishment of Police outposts in the location where the project is to be located to provide security, if required, to the workers and the cost of which will be borne by the developer.
    
    
19. To establish and promote a State owned Power Trading entity .
    
    
20. To establish and promote a State owned Power Generating Company.
    
    
21. To promote Distribution Companies in the State.
    
    
22. To establish a State-owned Transmission utility e.g. Meghalaya ST company and strengthen the State Load Despatch Centre (SLDC).
    
    
23. Industries shall be encouraged to install their own captive plant to meet their energy requirement and to ease the pressure of capacity addition. However , from a long term perspective, since captive generation may not be the most efficient use of scarce resources and smaller projects are at the cost of economies of scale are, the State shall endeavor to provide adequate power of appropriate quality such that industry does not feel the need to establish expensive captive power. Therefore, while captive power generation shall be encouraged to assist in meeting short term power shortages, the State shall build a power system that is integrated and reliable and new generation should ideally be grid connected. Distributed generation and captive generation will be encouraged to exploit bio fuels and alternate fuels.
    
    
24. The IPP shall be encouraged to develop Non-Hydro projects through MOU/ICB route .
    
    
25. This policy shall come into operation from the date of its publication in the official gazette and will remain in force until superseded or modified by another.