Shillong, Dec 10: After successive governments’ indecisions and failed experiments to revive the now-defunct Mawmluh Cherra Cement Limited (MCCL), the state government has finally launched the process of shutting down MCCL by approving an industrial closure scheme worth around ₹100 crore for the company.
The one-time special scheme for closure of MCCL was approved in a cabinet meeting that had prolonged discussion on the crucial issue before arriving at the decision on Monday.
“We have finalised and approved a one-time special plan for industrial closure scheme for MCCL,” said chief minister Conrad K Sangma after the cabinet meeting.
The government has had detailed discussions with MCCL employees to give them a “golden handshake” with the one-time special scheme, he said.
The approved package will take care of VRS for 205 MCCL employees and different liabilities of the company.
The package, with employees and liabilities put together, is approximately ₹100 crore, the chief minister said.
As part of the initiative, the government will form a committee to dispose of or reuse the MCCL assets.
To a question on the failure of a proposed joint venture for reviving MCCL, Sangma said none of the three parties could meet the criteria set forth by the government.
Clarifying that the government had explored all options to resolve the MCCL crisis, Sangma said, “We explored all the options, even the option of investing from state government side.
One-time investment of ₹190 crore was required to revive the plant apart from running expenditures and the salary.
Besides, the previous mining leases were expired in 2017 and 2022, and there was need for fresh negotiations with the mine owners.
“Keeping all these factors in mind after exploring all the possible options, we have to come to option of closure,” the chief minister said.
Although there were unsuccessful attempts to revive the production in between, the plant has been completely closed for the past five years.
“The plant has been closed for past five years and it’s not producing anything. Therefore, though it is not our first choice, but we have to take this tough decision for the greater interest,” he said.
Otherwise, he said, the employees would have remained without salaries for many more months.
