SHILLONG: The State Government has decided to shut down Meghalaya Bamboo Chip Ltd (MBCL), an ailing bamboo chipping unit at Nongchram in East Garo Hills, which over the years has turned into a loss-making entity.
Speaking to media persons after the Cabinet meeting here on Monday, Chief Minister Mukul Sangma said he had held a discussion with the employees of the unit about the government’s decision to wind up the company that is facing sustainability hurdles.
Sangma said MBCL could not compete with private entities and frequent changes in market behaviour. Pointing out that the total voluntary retirement scheme for 15 of MBCL’s employees would come to around Rs 6.46 crore, the Chief Minister said reviving the unit would have been costlier.
MBCL was established in September 1979 with an authorised share capital of Rs 10 lakh and a term loan of Rs 9 lakh from MIDC, the holding company, to set up a 100-tonne/day bamboo chipping plant on 25 acres donated by the Nokma of Nongchram village.
The objective was to meet the demand for bamboo chips in paper mills – like Ashok Paper Mills, Titaghar Paper Mills and Bengal Paper Mills in Assam – and to uplift the economically backward people of the area by utilising the surplus electricity that was available then. However, as the years went by, the location of the factory proved to be a drawback for various reasons, including its remoteness, insurgency problems, floods that inundated the factory and power supply that became erratic over the years. Despite efforts to revive the unit through upgradation and diversification, the company ran at a huge loss.
Wholesale dealers approved
Meanwhile, the Cabinet on Monday approved seven new wholesale dealers for the new districts of the State. Food and Civil Supplies Minister RC Laloo informed that while one wholesale dealer each has been approved for Jowai and Khliehriat two each have been named for Mawkyrwat and Resubelpara. Similarly, one wholesale dealer has been approved for Mairang.
The State Cabinet also approved an amendment into the pre requisite qualification for promotion to Director of Institutional Finances & ex-officio secretary. Earlier, a Deputy Secretary was required to serve for at least four years for a promotion but now the term has been reduced to three.
The Cabinet also approved the Meghalaya Employment and Craftsmen training service rules.
Junior informatics officers appointed
The Cabinet approved the appointment of three junior informatics officers under Regulation 3 (f) of the Meghalaya Public Service Commission. 342 candidates had applied for the post.
