SHILLONG, Sep 30: Despite several attempts, the State Government has not been able to revive the famed Mawmluh Cherra Cements Limited (MCCL) and now privatisation of the company is the only alternative left with the State Government to save the Company from complete collapse.
Set up in the early 1960s, the MCCL is the oldest public sector undertaking (PSU) in the state and the only state-owned cement plant in Meghalaya. After several years of performing exceedingly well, the company started a decline in its revenue and despite heavy investments towards modernisation of the MCCL plant, , the firm continued to remain a loss-making enterprise forcing the Government to go for the privatization of the corporation.
Mawmluh Cherra Cement Limited (MCCL) chairman, Wailadmiki Shylla said that the proposal for private venture is with the Planning Department and necessary documentations are being prepared for the idea.
The idea was mooted some time ago but it has been delayed due to the COVID-19 situation and the recent Autumn session of the Assembly.
“Looking at the present scenario, we feel privatization is the only option left with us to revive the company now,” he said
Informing that the Expression of Interest will be floated very soon for private venture, Shylla informed that there are many interested parties that intend to take up the project.
At a time when many companies spend crores for branding, the MCCL is already a brand due to the superior quality of the cement it produces.
When asked about the fears that persist with the idea of a private venture, Shylla said that even though the idea of a private venture is being mooted, the Government will have controlling shares in the company and also the decision-making powers. The state Cabinet had last month cleared the proposal to initiate the process of a joint venture partnership in the MCCL keeping in mind the financial constraints the State is facing due to which it is unable to invest Rs 190 crore to revive the PSU.
MCCL has been making continued losses since 2007-08. As of 2018-19, the cumulative losses stood at about Rs 234 crore and as of September 30, 2020, MCCL owed Rs 60.75 crore in overdue liabilities to government departments, suppliers & contractors and employees.
It is estimated that the liabilities of the MCCL have accumulated to Rs. 65.93 crore which includes Rs. 27.09 crore due to government departments, Rs. 14 crore to suppliers and contractors and Rs. 24.84 crore as liabilities to employees.
