Shillong, Oct 13 — The Meghalaya Cabinet has approved the winding up of state-owned Meghalaya Cherra Cement Limited (MCCL), with outstanding liabilities of around Rs 24.43 crore to be written off to facilitate the company's formal closure, Chief Minister Conrad K. Sangma said on Tuesday.
The approved waiver comprises approximately Rs 8.9 crore in pending sales tax dues and Rs 15.53 crore in royalty liabilities, paving the way for the completion of the winding-up process.
Sangma said the government had already cleared the dues payable to the company's employees, fulfilling its commitment to ensure that their outstanding payments were settled before proceeding with the closure.
Explaining the rationale behind the decision, the Chief Minister said MCCL was wholly owned by the state government and that the outstanding liabilities largely involved dues payable to government departments.
He indicated that retaining these liabilities would complicate the closure process, as the amounts would effectively involve financial transfers between different arms of the state administration.
The Cabinet's decision to write off the outstanding tax and royalty dues is expected to simplify the company's winding up and enable the government to complete the formalities without requiring additional financial outgo on account of these interdepartmental liabilities.
The move marks a significant administrative step towards ending the operations of the state-owned cement company, with the settlement of employee dues and resolution of the outstanding liabilities forming key elements of the closure process.
MCCL, established as a public sector undertaking to manufacture cement, has been a state-owned industrial entity in Meghalaya. Its closure brings the government closer to completing the process of winding up the company and addressing the financial obligations associated with its operations.
The Cabinet's approval, however, concerns the proposed write-off of the specified liabilities and the formal winding-up process. The government is expected to undertake the necessary administrative and legal procedures to complete the closure.
The development comes as the state government moves to resolve the outstanding financial matters associated with the company and conclude the process in accordance with the applicable requirements.