By Our Reporter
SHILLONG, Jan 31: The Meghalaya government has announced the One-Time Special Industrial Closure Scheme for all affected employees of Mawmluh Cherra Cements Limited (MCCL) to ensure fair compensation while mitigating the hardships caused by the plant’s closure.
MCCL, originally established as Assam Cements Limited, was incorporated on May 20, 1955. Following the state’s bifurcation, it was renamed MCCL in 1974. The plant began commercial production on November 15, 1966, and expanded with additional kilns installed in 1979 and 1985.
However, the Wet Process Plant was decommissioned in August 2014 due to high operational costs, excessive power consumption, and environmental challenges. A 600 TPD (tons per day) Dry Process Plant was later commissioned in September 2016 at a total cost of Rs 142.97 crore. Despite this, operational challenges and low-capacity utilization (25%) rendered the unit financially unviable. The plant has remained non-operational since March 2020.
Following the national lockdown due to the COVID-19 pandemic, the MCCL cement plant ceased operations. Since then, the government has held multiple discussions with various stakeholders and has ultimately concluded that reviving MCCL is not feasible due to environmental, financial, and operational constraints.
Under the One-Time Special Industrial Closure Scheme, permanent employees will receive payment equivalent to 48 months’ salary (Basic + DA), calculated as two months per year of completed service (up to a maximum of 48 months), OR the monthly salary (Basic + DA) for the remaining years of service, subject to a maximum of 48 months.
Outstanding dues for Home Guards are also covered under this package.
Suppliers and Contractors will receive a settlement package of approximately Rs 7.73 crore. Outstanding payments for 90 former employees total Rs 6.81 crore.
The total financial outlay under these provisions amounts to Rs 98.25 crore.
The cut-off date for the scheme’s implementation is December 31, 2024. Payments are expected to be disbursed in three installments over three financial years, starting from FY 2024-25, in the ratio of 40:30:30.
