New Delhi: The Meghalaya Cabinet has approved a proposal to scrap a 500 MW thermal power project after the North Eastern Electric Power Corporation Limited (NEEPCO) expressed its interest in green energy, Power Minister AT Mondal said on Saturday.

The Minister said that following the cabinet clearance, an MoU signed with the company will now stand scrapped, though the government will continue to pursue the project with other interested parties in the future to bridge the huge power deficit.

"The NEEPCO has written to us saying that they don't want to continue with this power project and they want to scrap it," Mondal told PTI.

The NEEPCO had told the Meghalaya Government they will not invest in thermal projects and they projected themselves as a "green" company, a senior power department official said.

On Friday, Chief Minister Conrad K Sangma launched the Rs 500 crore CM Solar Mission aimed at minimising the power crisis in this northeastern hill state.

"The people-centric CM Solar Mission will be a flagship renewable energy intervention committed to fostering green and clean energy transformation across the state," Sangma had said on Friday.

According to the Chief Minister, the government's subsidy will range from 70 percent for individual households to 50 per cent subsidy for schools, hospitals, hotels, and other commercial entities.

With an installed capacity of 378.38 MW, Meghalaya is dependent on hydel-based power projects and the current peak demand for electricity is over 500 MW and it is increasing every year by over 50 MW, a power department official told PTI.

Except for the Umiam Hydel Project, all are river power projects and when rainfall decreases, the generation of power also dips, he said.

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