Shillong, Mar 9: Chief Minister Conrad Sangma today informed that the State Government is preparing the Cabinet Memorandum seeking the approval of the Cabinet for the Joint Venture proposal of MCCL.
He informed the same in his reply to a Call Attention Notice moved by Mawlai MLA PT Sawkmie over the cost of cement sold by Mawmluh Cherra Cements Limited.
Conrad stated that although he could not provide a specific response to the issue pointed out, he said that the average production of the dry process plant started in September 2016, was only about 40,000 MT per annum.
“The production was way below the breakeven level which resulted in the company not being able to cover even the fixed costs,” he said.
The Chief Minister stated that the main reasons for low capacity utilization could be attributed to unscheduled breakdown maintenance and repairs and lack of knowledge and skills to operate the new Dry Process Plant.
He added that since the state government is not in a position to invest Rs 190.32 crores on MCCL due to financial constraints, the government is deciding to explore option 2, which is to enter into a joint venture with a private entity who has the capacity for making significant investment in the plan.