Shillong, Dec 9: The Meghalaya government has officially initiated the process to close down Mawmluh Cherra Cement Limited (MCCL), once renowned for its high-quality cement production.

Chief Minister Conrad K. Sangma announced the decision following a prolonged cabinet meeting on Monday, describing it as a “difficult but necessary” step.

Addressing media persons, Sangma said, “The last decision which was made today was to finalize and approve a one-time special plan for an industrial closure scheme for MCCL. We are in the process of closure of MCCL. The scheme, after detailed discussions with MCCL employees, was brought to the cabinet today, and after thorough deliberation, the cabinet approved it.”

The closure process will include a Voluntary Retirement Scheme (VRS), also referred to as a “golden handshake,” aimed at supporting the employees during the transition. According to Sangma, “This particular scheme will be discussed with the Employees’ Association, and once the agreement is signed, it will be formalized. The closure process will then follow, which requires multiple formalities as MCCL is a public limited company.”

The financial impact of the closure is expected to be significant, with an estimated cost of over Rs. 100 crore. This amount will cover employee benefits under the VRS and the settlement of outstanding liabilities.

When asked if the employees would be transferred to other government departments, Sangma clarified, “The whole idea of VRS, or you can say a special package, is that this responsibility will not be on us.”

The closure will affect around 205 employees who have been part of the long negotiation process. Sangma stated, “We have been discussing this with the employees for the last two years. This has been a long-drawn exercise with multiple rounds of discussions, and most of their concerns have been addressed. Today’s cabinet decision formalizes the package, and further talks with the Employees’ Association will finalize the details.”

Notably, the Chief Minister confirmed that the assets of MCCL will be disposed of after the official closure. A committee will be set up to oversee this process. “We are going to dispose of the assets, and a committee will be formed for this. This will happen post-closure. The government will also explore the possibility of reusing certain assets, including land, that may be useful for the state,” Sangma stated.

Meanwhile, the government had previously explored the option of reviving MCCL through a joint venture. However, the initiative did not yield positive results. Sangma explained, “We floated an Expression of Interest (EoI) and received responses from three parties. One party failed to meet the qualification criteria, the second party initially showed interest but later backed out, and the third party also did not fulfill the necessary requirements.”

Attempts were also made to consider government investment for MCCL’s revival. However, the projected cost was found to be unviable. “If we had to revive this plant, it would require an investment of ₹190 crore, along with running expenditures, pending salaries, and other liabilities. Furthermore, the mining leases for raw material had already expired — one in 2017 and another in 2022 — which would have required fresh negotiations with mine owners. Taking all these factors into account, we had to opt for the closure,” Sangma explained.

He added that the plant has been non-functional for the past five years, with no production taking place during this period. “This was not an easy decision. It was not our first choice. But considering the financial burden, the safety of employees, and the overall welfare of all stakeholders, we had to make this tough decision,” he concluded.

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