SHILLONG, March 9: The state government on Tuesday confirmed the move of entering into a joint venture pact with a private entity to revive the Mawmluh Cherra Cement Limited (MCCL).
Replying to a call attention motion moved by Opposition Chief Whip, PT Sawkmie, Chief Minister Conrad Sangma said that the state government was preparing a memorandum seeking approval of the cabinet for the joint venture proposal.
Sangma said that the old wet process plant of the MCCL was discontinued in August 2014 and from September 2006, the company concentrated on efforts to complete the installation of 600 TPD Dry Process Plants.
After much delay, the commercial production of the Dry Process Plants started in September 2016 at a cost of Rs 142.97 crore.
The production capacity of the plants is 15,000 metric tonnes per month. However, the new plants could not attain the production levels for sustenance.
“The average production of the plants during from April 2017 to March 2020 was 40,000 metric tonnes per annum. The production was way below the breakeven level which resulted in losses,” the CM said.
The state government has been assisting the company by providing grants to revive the company. From 2014-15 to 2020-21, the state spent Rs 177.50 crore.
However, due to the pandemic-induced lockdown, the plant was shut down and has remained nonfunctional since.
Citing an independent study conducted in August 2019, he said an amount of Rs 190.32 crore will be required to revive the MCCL.
The liabilities of MCCL currently stands at Rs 65.93 crore, including Rs 27.09 crore dues to government departments, Rs 14 crore to suppliers and Rs 24.84 crore dues to employees.
While moving the call attention, Sawkmie said the cement produced by MCCL was the best in the country at one point of time and the company had supported many families.