Govt to go for JV to revive MCCL

Govt to go for JV to revive MCCL

Shillong, Mar 9: Chief Minister, Conrad Sangma on Tuesday told the Meghalaya Assembly that the government was considering going for a joint venture with a private entity that has the capacity for making significant investment in the Mawmluh Cherra Cements Limited (MCCL).

“The State Government is presently preparing the Cabinet Memorandum seeking the approval of the Cabinet for the Joint Venture proposal of MCCL,” Sangma said.

Sangma informed that on July 22, last year he had convened a meeting with the representatives, government officials and stakeholders of Sohra Syiemship and Mawmluh Durbar to discuss the current status and the strategies which could be adopted for reviving the fortunes of the MCCL.

After due consideration, the State government had three options with regard to MCCL and these were – restart the operations at MCCL with the support of fresh infusion of funds by the state government and intense mining as an additional source of revenue generation, restart operations by inducting a joint venture partner in MCCL through partial divestment of equity stake in favour of the joint venture partner and taking cognizance of the current financial and operational situationof MCCL, the financial situation of the government and the environmental challenges resulting from the discovery of the Mawmluh Caves in close proximity to the limes stone mines, stop the operations at MCCL and wind up the company.

He informed the House that since the state government is not in a position to invest 190.32 crore on MCCL due to the financial constraints, the first option was dropped. Similarly the third option was also not considered to be an acceptable choice and all stakeholder decided for joint venture.

Sangma informed that as per latest estimates the liabilities of the MCCL have accumulated to Rs. 65.93 crore which includes Rs. 27.09 crore due to government departments, Rs. 14 crore to suppliers and contractors and Rs. 24.84 crore as liabilities to employees.

The Chief Minister said that the state government has been assisting the company by providing grants to revive the plant.

“From 2014-15 to 2020-21, the state government has provided a total amount of Rs. 177.50 crore. However, with the low level of inadequate operations and generation of revenue, MCCL found itself reeling under severe problems. With the announcement of the national lockdown in the last week of March, 2020, the plant is yet to be made operational,” Sangma said.

The Chief Minister informed that the total strength of the employees is 306 consisting of the wage board category, non-wage board and contractual.

“During the year these employees have been receiving part salary. The state government has released interim payment for salary amounting to Rs 3 crore along with Rs 1 crore as contingent expenditure,” Sangma said.

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