Shillong, Jul 19: The Meghalaya cabinet has approved the proposal for Joint Venture for Mawmluh Cherra Cement Ltd (MCCL).
Informing this after the cabinet meeting on Monday, Chief Minister Conrad Sangma informed that through the years, MCCL has been facing many financial and operational issues.
â€œThe proposal was brought to the cabinet by the Industries Department to look at ways in which MCCL can be revived. Therefore, keeping in mind the financial constraints on the state and the inability of the state to invest 190 crores, it was suggested that a joint venture route would be best,â€ Sangma said.
The Chief Minister said that in the last six to eight months he had met the stakeholders on several occasions to discuss the matter.
Sangma said that there were three options before the government, the first was for the government to invest in MCCL, the second option was to go for Joint Venture and the third option was to close down MCCL.
During the Budget Session of the Meghalaya Assembly in March, the Chief Minister had informed the House that till then 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.
He had also informed the House that the state government has been assisting MCCL by providing grants to revive the plant.
Sangma told the House that from 2014-15 to 2020-21, the state government has provided a total amount of Rs. 177.50 crore but due to the low level of inadequate operations and generation of revenue, MCCL found itself reeling under severe problems.