Meghalaya govt to invest Rs 10 Cr as equity in MCCL

Meghalaya Chief Minister Mukul Sangma today said the state government has earmarked Rs 10 crore as equity for the state's oldest public sector cement company, the Mawmluh Cherra Cement Ltd (MCCL) which is in financial trouble.
The Chief Minister said since this is a public sector undertaking, the government has certain commitment towards up keeping it even as a lot of public money has gone into modernisation of the project.
"The government has released Rs 85 crore as equity over the years and Rs 10 crore is earmarked for the year 2015-16," he said during the Question Hour.
He said the new plant is in the commissioning stage and is yet to be functional and the reason for the delay is the chain of effects following the delayed receipt of funds during the early stages of the project.

While the company's 500 plus employees are yet to get their five month's salary after the closure of the old plant, the chief minister informed that monthly expenditure for staffs' salary is Rs 1.3 crore.
Stating that the MCCL ought to take care of its obligation to its workers, the chief minister said the government would review its performance and also if it is keeping its commitment.
The new plant has started since 2007 but production is yet to take place and certain items procured are yet to arrive at the site, United Democratic Party legislator and local MLA T Chyne said.

Admitting this, the chief minister said the delay is more than expected leading to time and cost over run.