Meghalaya Govt requires Rs. 98.25 crores for implementing One Time Special Industrial Closure Scheme for MCCL

Syllad | The Rising MeghalayaFebruary 3, 2025

The Meghalaya Government has notified the One-Time Special Industrial Closure Scheme for Mawmluh Cherra Cements Limited (MCCL) Unit, 2025, to ensure a fair compensation to employees and stakeholders with an aim to mitigate the hardships caused by the plant’s closure where they will incur an amount of Rs 98,25,92,649/- (Rupees ninety-eight crore twenty-five lakh, ninety-two thousand six hundred and forty nine) only for implementing the scheme.

As per the notification, the Scheme comprised payment of 48 months’ salary (basic + DA) which will either be two months per year for each completed year of service and computed for a maximum of 48 months, irrespective of years of service or Monthly salary (Basic + DA) for remaining years of service, subject to a maximum of 48 months. Further, Gratuity as per the Payment of Gratuity Act, 1972, leave encashment for earned leave up to 300 days, settlement of all outstanding dues (salaries, overtime, arrears, loans, etc.) and compliance with applicable pay revisions as for Officers which will be as per the norms of the 5th Pay Revision of the State Government and for Wage Board Employees:

The One Time Special Industrial Closure Package for the MCCL permanent employees including the outstanding to settle the liabilities of the Home Guards amounts to Rs 83,71,39,896.00/- (Rupees Eighty-three crore seventy-one lakh thirty-nine thousand eight hundred ninety-six) only. While an amount of Rs. 7,73,08,345/- (Rupees seven crore seventy-three lakh eight thousand three hundred and forty-five) will be required for settlement the liabilities of the Suppliers and Contractors.

According to the notification, the One Time Special Industrial Closure Package to settle the outstanding payments to Employees for settling the due of 90 (ninety) ex-Employees amounts to Rs. 6,81,44,408/- (Rupees six crore eighty-one lakh forty-four thousand four hundred and eight) only. The cut-off date for the implementation of the Scheme shall be 31st December, 2024 and accordingly all calculations and liabilities are base as per this cut-off date.

The Mawmluh Cherra Cements Limited (NCCL), originally Assam Cements Limited, was incorporated on May 20, 1955 and renamed Mawmluh Cherra Cements Limited (MCCL) in 1974 post-State bifurcation and the commercial production of the Plant began on November 15, 1966, with expansions through the installation of additional kilns in 1979 and 1985.

The Wet Process Plant was decommissioned in August 2014 due to high operational costs, power consumption and environmental challenges. A 600 TPD Dry Process Plant was commissioned in September 2016, at a total cost of Rs 142.97 crore. However, operational challenges and low-capacity utilization (25%) rendered the unit financially unviable. The MCCL Cement Plant has been non-operational since March 2020, following the National Lockdown due to the COVID-19 pandemic and various discussions have been held by the Government with various stakeholders and it has been finally decided that the MCCL’s revival is not feasible due to environmental, financial and operational constraints.