SHILLONG, July 12: Two companies – JK Cements from New Delhi and Arihant Private Limited from Kolkata – have responded to the expression of interest floated by the state government for a joint venture (JV) to run the sick Mawmluh Cherra Cements Limited (MCCL).
MCCL Chairman Wailadmiki Shylla on Tuesday said three companies had participated in the EoI process but one was found to be just a marketing unit, not a manufacturer. “So, we have given time to Arihant Private Limited, Kolkata and JK Cements, Delhi to submit their final DPR before July 18,” Shylla said.
Last year, the Cabinet approved the proposal to initiate the process of having a JV for the cash-strapped MCCL.
Set up in the early 1960s, the MCCL is the oldest public sector undertaking (PSU) in the state. It is also the only state-owned cement plant in the state.
After performing exceedingly well for several years, its revenue started declining. Despite heavy investments for modernisation, the PSU continued to remain a loss-making enterprise and this forced the state government to go for its privatisation. It has been suffering losses since 2007-08.
Recently, Shylla had stated that the state government would not only have the controlling shares but also the decision-making powers in the PSU.
The Cabinet earlier cleared the proposal to initiate the process of JV in MCCL due to financial constraints due to which the government was unable to invest Rs 190 crore to revive the PSU.
The liabilities accumulated to an estimated Rs 65.93 crore including Rs 27.09 crore dues to government departments, Rs 14 crore to suppliers and contractors and another Rs 24.84 crore as liabilities to the employees.
