JK Cements from New Delhi and Arihant Private Limited from Kolkata are the two businesses that replied to the state government’s call for expressions of interest for a joint venture (JV) to manage the struggling Mawmluh Cherra Cements Limited (MCCL). Three companies participated in the EoI process, according to MCCL Chairman Wailadmiki Shylla, “but one was discovered to be merely a marketing unit and not a manufacturing. As a result, Arihant Private Limited in Kolkata and JK Cements in Delhi have been given until July 18 to submit their final DPR”, according to Shylla.
The MCCL is the state’s oldest public sector enterprise (PSU), having been founded in the early 1960s. It’s the only cement plant in the state that is owned by the government.
Its revenue began to fall after performing exceptionally well for several years. The PSU continued to operate at a loss despite significant investments in modernization, which compelled the state government to pursue its privatisation. Losses have been occurring since 2007–2008.
Due to financial limitations, the government was unable to invest Rs 190 crore to revive the PSU, hence the Cabinet earlier approved the proposal to start the JV process in MCCL.
Liabilities were an estimated Rs 65.93 crore, of which Rs 27.09 crore was owed to government agencies, Rs 14 crore was owed to vendors and contractors, and Rs 24.84 crore was owed to employees.
