SHILLONG, Feb 12: With the proposal for a joint venture in the Mawmluh Cherra Cement Limited (MCCL) now getting the approval of the company’s board, the Expression of Interest (EOI) will ‘very soon’ be floated inviting interested parties for the proposed partnership, according to official source.
“Once the EOI is floated, interested parties will be given at least 35 days to respond to the EOI and submit their bids,” an official said.
Last year, the Cabinet had approved the proposal to initiate the process of having a joint venture for the MCCL as the PSU has been subjected to financial woes.
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 privatisation of the corporation.
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.