The Meghalaya cabinet has approved the Memorandum of Agreement (MoA) to be signed with the state-run North Eastern Electric Power Corporation Limited (NEEPCO) for executing two power projects in Meghalaya.

The MoA for a 500 MW thermal power project in Garo Hills and the 85 MW Mawphu Stage II hydel project will be signed shortly, Chief Minister Mukul Sangma said after a cabinet meeting last night.

He said that the clauses in the MoA are confined within the provisions of the state's power policy and the Indian Electricity Act of 2003.

"The project monitoring committees will try its best to ensure that the project is implemented on time while strictly following the provisions laid down in the MoA," he said adding that 80 per cent of the jobs generated by the projects would be reserved for locals.

NEEPCO sources said one per cent of the project cost in the thermal project would be used for development works in the project area in East Garo Hills district.

The power company has selected Narengri in East Garo Hills district as the site for the thermal project and coal would be brought in from the neighbouring mines of South and East Garo Hills.

NEEPCO, officials said, had identified the project area and had carried out preliminary survey works, before the MoU signed with the government was kept in suspension for more than a year along with four other deals following a controversy over allotment of projects to private companies.

The preparation of DPR would take about a year, while the project is expected to be completed in about four years time, the officials said.

Although Meghalaya has a hydro-electric potential of 3000 MW, the present power generation capacity of the state is only 175 MW as against the demand of 600 MW.