Meghalaya Govt to consider inducting joint venture partner in MCCL, says CM Conrad Sangma
The State Government is considering inducting a joint venture partner in Meghalaya Cherra Cements Limited (MCCL), said Chief Minister Conrad K Sangma on Monday.
Replying to a query raised by Congress MLA from Umroi George B Lyngdoh during the ongoing budget session, Sangma said the timeline for completing the proposed privatisation (joint venture) is yet to be decided.
“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 said.
“Despite the support provided by the State Government to MCCL, the company could not become a profitable and self-reliant entity,” he said.
He informed that as of 30th September 2020, MCCL owes Rs 60.75 crore in overdue liabilities to Government Departments, suppliers & contractors and employees.
“In view thereof, it will not be possible for the State Government to provide the funds to revive MCCL,” Sangma said.
Raising a supplementary question, Umroi legislator George B Lyngdoh asked whether the State Government considers revamping the top management before opting for a joint venture.
Responding to this, Sangma admitted that there was mismanagement in the state-owned cement company apart from other reasons, and despite the change in management, the State would still have to invest Rs 190 crore to revamp the company.
“This has to be done, holistically,” he said.
To a query on price fluctuation, the Chief Minister said that the rates are based on market dynamics and still governed by market forces.
To apprehensions raised on private parties having complete control of MCCL, Sangma brushed aside the doubts stating that it would be a joint venture and not a privatised mode.
“We have not decided the stakes yet,” he added.
Recently, the Minister in charge of Commerce & Industries, Sniawbhalang Dhar, told the House that the MCCL went out of production in March 2020, and the total number of livelihoods at stake is 306.
(Edited by Gabriel G Momin)