HNLC’s death threat, a result of some political game by vested interests, says Sohra MLA

Syllad | The Rising MeghalayaJanuary 2, 2024

NPP legislator from Sohra Gavin Miguel Mylliem on Tuesday referred the recent HNLC’s death threat against him over the move to shut down the Mawmluh Cherra Cements Limited (MCCL) as a result of some political game by vested interests. 

“In view of the above facts, I was most surprised when the Press Release from the HNLC had issued threats against me personally. It was surprising because as far as my knowledge goes, it is the first time that the HNLC has issued a threat against a sitting MLA, thereby giving an impression that the banned organisation is dabbling in the electoral politics of the State. This goes directly against all tenets of democratic polity. It further gives rise to an impression that the threat is the result of some political game by a vested interest,” Mylliem said in a statement.

“Such a threat, against an MLA who has only the larger public interest in mind, and who has gone out of his way to help all his constituents, and especially the poor and needy, would cast a negative light on the organisation,” he said while adding “I therefore presume that the misleading call by the HNLC has been based mainly on misinformation and lack of knowledge of the facts of the case, and I hope that the HNLC would abstain from making such baseless statements henceforth.”

On December 29, the proscribed Hynniewtrep National Liberation Council (HNLC) had opposed the Meghalaya government’s move to shut down the MCCL and demanded the Sohra MLA to take responsibility by tender his resignation failing which action will be taken against him.

He said the recent statement by the banned militant outfit holding him accountable for the downfall of MCCL and for the government’s talk to close down MCCL and implement VRS for all the existing employees is considered totally baseless.

“Everybody would be aware that any decision taken by the Government is a collective decision and not a decision taken by an individual, for which he is to be held responsible. It is ludicrous that the HNLC would consider that I, as an individual alone should be held responsible for the decision taken by the Government,” Mylliem said. 

On the HNLC’s demand for his resignation, the MLA said, “Now coming to the main issue of the HNLC demanding for my resignation, I would like to state that I have been elected by the people of 28-Sohra Constituency since 2018 onwards, and that I shall serve the people as long as the people of my constituency mandates me, as per law, to do so. The people of my constituency are fully aware that I have never backed down in trying to serve my people with utmost sincerity and diligence, something which is reflected in the development which has taken place in my constituency as a whole since I have taken over as the MLA.”

Stating the MCCL company and its main area of operation is located within Shella constituency and not within Sohra constituency as presumed by many, Myllie said, “For most, this fact would be ample reason for the Sohra MLA not to be too concerned with matters of the MCCL, and to leave things totally to the MLA Shella. However, due to the fact that there are many workers of the company from within the territorial limits of Sohra Constituency, and in view of my concern at the state of affairs of this leading PSU in the State, and the adverse effects it would have on the economy of the area as a whole, I had taken an interest in trying to uplift the MCCL. My colleagues in the Assembly are also aware that on many occasions, I had raised the matter relating to the MCCL in the Assembly, urging the Government to take a practical view on the matter.”

“I personally am of the opinion that the MCCL has reached the present stage because of a variety of reasons, and holding the present MLA as responsible for the present situation, is totally without any basis. By the time had taken over as MLA in 2018, the harm had already been done,” he said while adding that “If any questions are to be asked, and if any responsibility is to be fixed, then they should be directed against the persons who had been functioning in responsible capacities from 2007 onwards when the plant’s functioning started to deteriorate.”

Highlighting the history of the MCCL, Mylliem said that the MCCL, originally named Assam Cements Limited was incorporated on May 20, 1955. It was renamed as Mawmluh Cherra Cements Limited after the State was created.

MCCL had gone into commercial production from the Wet Process Plant on 15th November, 1966 and, after completion of the Reactivation Programme under the guidance of ACC Ltd, Certain core areas of operation were toned up for Optimisation of Production. 

This Reactivation program was completed in 1991-92, and the plant now had a capacity 1.75 lakh tonnes per annum. 

The reactivation program proved to be very successful and this can be seen from the fact that from the time that the reactivation project was completed no major investment was required to be made any more in the Wet Process Plant.

Because of the passage of time, and the ageing of the Plant, the company had conceptualized an expansion project in 2005 for addition of a 600-TPD Dry Process Plant. 

With the approval of the government and on assurance of full financial support, the project was embarked upon from May 2006 at an estimated cost of Rs 84,.95 crores. Initially the project was scheduled to be completed by October 2007 but unfortunately it was badly delayed and was not completed till September 2016, around 9 years behind schedule. 

He said there were several factors which led to this delay of which one of the main factors was the untimely release of funds by the then Governments, which ultimately led to cost escalation of the expansion project.

“On reviewing the past performance of the MCCL, we could see from the figures that from the financial year 1989-90 till 2006-07, the company earned substantial profits and the Company at one point of time was totally debt free. It is not a surprise that during the periods between 1989 to 2006, MCCL did not require any financial support at all from the government. This is a very credible achievement for which MCCL needs to be congratulated,” he said while adding “This, however unfortunately changed and we could see that from 2007 onwards, the wet process plant faced frequent breakdowns and continuous operating problems. Moreover, in view of the increasing age of the plant, the operational expenses and consumption of power increased considerably, leading to a heavy financial outgo. As a result, all the accumulated reserves of the company which it had earned over the years has been exhausted since this was partly invested in the expansion project and also partly utilised in the running of the existing plant.

The production from the plant reduced drastically and this, in turn had a direct impact on the finances and liquidity of the company.”

The MLA further sad that it is also important to mention that the Coal ban by NGT in 2014 was one of the main factors which compelled MCCL to stop all operations of the Old Plant in August 2014 due to the depletion of the reserve stock of coal and non-availability of fresh supply.

Now coming to the Dry Process Plant which was commissioned in the year 2016, nine years after its scheduled time of completion, with its planned cost of Rs 85 crores having escalated to Rs 143 crores.

The operations of the New Plant commenced in 2016. The installed capacity of the Plant was 180000 MT per annum i.e 15000 MT per month, but the MCCL, in the process, had accrued huge liabilities.

It was however, still presumed that on commissioning of the New Plant and its successful operations, MCCL would soon be able to meet its operating and other running expenses and would also be in a position to clear the accrued liabilities.

However, after commissioning of the new plant, it was seen that the capacity utilisation worked out to be only around 25%, which was much less than the level of about 70% which was required for the plant to break even. Further, with frequent operational hiccups, the revenue generation fell far below the desired level.

Consequently, MCCL was unable to meet even its operating expenses and its liabilities were further increased with the passage of time.

A further blow came in 2020 due to the outbreak of Covid-19 where the Factory was completely idle with no production. This idle period led to wear and tear in the machines, and unfortunately, after the COVID-19 period, the industry found that it was unable to go in for further production and MCCL had no other option but to write to the Government seeking Financial assistance for resuming operations.

He said that to revive the Plant the Government was left with 3 options – infusion of additional funds by the State Government under a restructuring scheme, joint venture with private cement manufacturers and dissolution of the firm involving suitable VRS for the employees and clearance of existing liabilities.

“Since the above 2 options do not appear to be feasible and practical, the Government seems to be left with no other option but to consider this Option No-3. It is also important to note that the Mawmluh Cherra Cements Employees Union vide letter No-MCCEU/CORR/23-24/91 dated 28th June 2023 had also written to the Management expressing their desire to negotiate the terms and conditions to implement the Voluntary Retirement Scheme. In view of these. facts, it is not correct to say that Government has taken a decision forcefully in the matter,” he said.

“It will be understood that the Government is facing a very difficult situation while deciding on the matter. However, l am confident that the Government will, in its wisdom, take a decision which would be in the interest of the workers, locals, and the State as a whole,” he added further.