Brief

– Meghalaya Govt approves proposal for joint venture to operate MCCL

– Joint venture in view of Govt’s inability to invest Rs 190 crore

– Had option to either close down MCCL or go for joint venture

Full Report

Shillong, July 19: Meghalaya government’s inability to invest Rs 190 crore at this point in time has forced it to approve the proposal for a joint venture with private entities to operate the Mawmluh Cherra Cement Limited (MCCL).

After the meeting held on Monday, Chief Minister Conrad K Sangma said, “…keeping in mind the financial constraints that are there in the state and the inability of the state to invest Rs 190 crore at this point in time, it was suggested that a joint venture route be taken. With that proposal, the cabinet today has cleared the proposal to initiate the process for joint venture for MCCL.”

He informed that in the last six to eight months, he has been engaging with a large number of stakeholders of the MCCL including the employees, the management, the land owners, the owners of the mines and the local representatives.

Sangma said because of the huge financial requirement and the burden that the MCCL is right now and the fact that most of the production is not taking place, there was a need to take a decision on how to repair things and move forward.

He said the meeting discussed about three options which include the state government investing to the tune of Rs 190 crore, to find a joint venture partner to come in and invest in MCCL or to close down MCCL.

As per survey conducted by the Industries department, the MCCL has been running on a loss.