Meghalaya Cabinet clears proposal to go for joint venture partnership in MCCL 

SHILLONG: 

The Meghalaya Cabinet on Monday cleared the proposal to initiate the process of having a joint venture partnership to revive the Mawmluh Cherra Cements Limited (MCCL). 

“Keeping in mind the financial constraints that are there in the state, and the inability of the state to invest Rs 190 crore, the cabinet cleared the proposal to go for joint venture,” Meghalaya Chief Minister Conrad K Sangma briefed media persons after the cabinet meeting here on July 19. 

Sangma informed that three options were placed before the cabinet – Investment of Rs 190 crore by the state government, joint venture partnership and closure of MCCL, for which the second option was considered more viable. 

“Because of the huge financial burden and the fact that most of the production is not taking place, there was a need to take a decision on how to repair things and move forward,” the CM added. 

During the Budget Session in March this year, the CM had also stated that the government is considering a joint venture partnership in MCCL. 

“There are multiple reasons that prompted the government to consider inducting a joint venture. MCCL has been making continued losses since 2007-08. As of 2018-19, the cumulative losses stood at about Rs 234 crore,” Sangma had stated.

As of 30th September 2020, MCCL owes Rs 60.75 crore in overdue liabilities to Government Departments, suppliers & contractors and employees.

Recently, the Minister in charge of Commerce & Industries, Sniawbhalang Dhar, had said that the MCCL went out of production in March 2020, and the total number of livelihoods at stake is 306.

(Edited by Ibankyntiew Mawrie)

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