By Our Reporter
SHILLONG: The cements plants operating in the State have managed to exploit the Central and State subsidies amounting to crores of rupees while their contribution toward the State exchequer through royalties on coal and limestone and by way of taxes is minimal.
As per the RTI documents, it is found that even after paying royalties and taxes, these cement plants are still able to pocket a huge amount of money.
Star Cement for instance have availed subsidies (both Central and State) from December 12 2004 to December 20, 2009 to the tune of Rs 137.75 crore.
After paying royalty and Meghalaya Value Added Tax (MVAT) to the tune of Rs 39.87 crore to the State Government, Star Cement is still earning a profit of 97.88 crore.
The RTI documents also revealed that Adhunik Cement have availed subsidies from August 7, 2010 up to January 31 2011 amounting to Rs 6.42 crore. Adhunik Cement still earned a profit to the tune of Rs 1.29 crore after paying royalty and MVAT to the State Government to the tune of Rs 5.12 crore.
It is also revealed that Green Valley Cement has managed to avail subsidies to the tune of Rs 1.20 crore from January 17, 2011 up to March 31, 2011. After paying royalty and MVAT to the Government amounting to Rs 12.05 lakh, the company still earned a profit of Rs 1.08 crore.
The RTI documents show that Hill Cement has earned a Central subsidy for transport from December 2, 2009 to June 30, 2010 to the tune of Rs 2.51 crore. The State subsidy is yet to be disbursed to the company.
Despite receiving only the Central transport subsidy, the company is able to earn a profit of Rs 2.08 crore after paying off royalty and MVAT to the tune of Rs 44.88 lakh.
As per the RTI documents, JUD (Best) Cement has availed Central Transport Subsidy of Rs 6.96 crore from April 9, 2009 to March 31, 2010.
This Company is also awaiting State subsidy. After paying royalty and taxes to the tune of Rs 55.40 lakh, the cement company earned a profit of Rs 6.40 crore.
Addressing a press conference, Maitshaphrang leader Michael N Syiem who had filed the RTI said that the companies have benefited tremendously from subsidies but the price of cement per bag is being sold at a higher rate in Meghalaya despite enjoying all benefits be it raw materials or subsidies.
Syiem said the Meghalaya government could generate very less revenue from cement plants which is being paid only in the form of royalty and central sales tax (CST) and the Meghalaya value added tax (MVAT).
The central subsidies include transport, interest, comprehensive insurance and capital investment besides the state subsidy.
“It is ironic that Meghalaya is a very rich state in terms of mineral resources but the people of the state are very poor and have not benefited from these companies because our leaders have no vision on how to generate benefits for the people,” Syiem said.