Meghalaya Cabinet winds up MCCL, writes off ₹24.43 crore in dues
Synopsis
The Meghalaya Cabinet has cleared the closure of state-owned MCCL by writing off ₹24.43 crore in dues owed to its own departments — a pragmatic move that sidesteps inter-departmental accounting complexity. With employee dues already settled, Chief Minister Conrad Sangma's government has removed the last major hurdle to formally shutting down a long-dormant public sector cement company.
Key Takeaways
The Meghalaya Cabinet approved the winding up of Meghalaya Cherra Cement Limited (MCCL) on 13 October 2026 .
Outstanding liabilities of approximately ₹24.43 crore — comprising ₹8.9 crore in sales tax dues and ₹15.53 crore in royalty liabilities — will be written off.
All dues owed to MCCL employees have already been cleared by the state government prior to this decision.
Chief Minister Conrad K.
Sangma noted that the liabilities involved interdepartmental state transfers, not obligations to external parties.
The government will now proceed with the necessary legal and administrative steps to formally complete the closure.
The Meghalaya Cabinet has approved the formal winding up of state-owned Meghalaya Cherra Cement Limited (MCCL), with outstanding liabilities of approximately ₹24.43 crore to be written off to facilitate the company's closure, Chief Minister Conrad K. Sangma announced on Tuesday, 13 October 2026. The decision clears a long-pending administrative hurdle in the closure of the public sector undertaking.
Breakdown of the Write-Off
The approved waiver covers two categories of dues: approximately ₹8.9 crore in pending sales tax liabilities and ₹15.53 crore in outstanding royalty dues. Together, these make up the bulk of the financial obligations that had kept the winding-up process incomplete. Chief Minister Sangma noted that since MCCL was wholly owned by the state government, the outstanding amounts effectively represented transfers between different arms of the state administration rather than genuine third-party liabilities.
Employee Dues Already Cleared
Ahead of the Cabinet's decision, the state government had already settled all dues owed to MCCL's employees, fulfilling what Sangma described as its prior commitment to protect workers' financial interests before proceeding with closure. The settlement of employee payments is a key condition in any public sector winding-up process, and the government's pre-emptive action on this front is expected to expedite the remaining legal and administrative formalities.
Why the Liabilities Were Written Off
Sangma explained that retaining these liabilities on the books would have significantly complicated the winding-up process, requiring inter-departmental financial transfers that would add procedural complexity without any net benefit to the state exchequer. Writing them off eliminates the need for such transfers and allows the closure to proceed cleanly under applicable legal requirements. Notably, because all creditors in this case are state government departments rather than private parties, the write-off does not impose losses on external stakeholders.
Background on MCCL
Meghalaya Cherra Cement Limited was established as a public sector undertaking to manufacture cement, operating as a state-owned industrial entity in Meghalaya. The company had been inactive for some time, and its pending closure had left unresolved financial obligations tied to multiple government departments. This Cabinet decision marks a significant step towards concluding those obligations and formally ending the company's existence.
What Happens Next
Following the Cabinet's approval of the write-off, the government is expected to initiate the necessary legal and administrative procedures to complete the winding-up under applicable company and state law. The resolution of the outstanding interdepartmental liabilities and the prior clearance of employee dues together form the foundational steps for a clean closure. The Meghalaya government is expected to complete all formalities in due course.
Point of View
Carrying those liabilities on the books is accounting theatre rather than a real obligation. The more meaningful signal here is the government's pre-emptive settlement of employee dues, which sets a reasonable standard for future PSU closures in the state. Meghalaya, like many smaller states, carries several loss-making public enterprises that have outlived their original mandates; this closure may indicate a broader appetite for rationalising the state's PSU portfolio. The real test will be whether the government follows through on the legal formalities swiftly, or whether MCCL joins the long list of 'approved closures' that linger in administrative limbo for years.
NationPress
13 Oct 2026
Frequently Asked Questions
What is Meghalaya Cherra Cement Limited (MCCL)?
Meghalaya Cherra Cement Limited is a state-owned public sector undertaking in Meghalaya established to manufacture cement. The Meghalaya Cabinet approved its formal winding up on 13 October 2026, citing unresolved financial liabilities and the company's long-inactive status.
Why did the Meghalaya Cabinet write off ₹24.43 crore in dues?
The Cabinet wrote off the dues because MCCL is wholly owned by the state government, meaning the outstanding liabilities were effectively amounts owed between different state departments. Chief Minister Conrad K. Sangma said retaining them would complicate the closure process without any net benefit to the exchequer.
What dues are included in the ₹24.43 crore write-off?
The write-off covers approximately ₹8.9 crore in pending sales tax dues and ₹15.53 crore in royalty liabilities, together forming the bulk of MCCL's outstanding financial obligations.
Have MCCL employees received their dues?
Yes. The state government had already cleared all dues owed to MCCL's employees before the Cabinet approved the winding-up, fulfilling its commitment to settle worker payments prior to proceeding with formal closure.
What are the next steps after the Cabinet approval?
Following the Cabinet's approval of the write-off, the Meghalaya government is expected to initiate the legal and administrative procedures required to formally complete MCCL's winding up under applicable company and state law.
