Coal news and updates

The State-owned Mawmluh Cherra Cements Limited (MCCL) at Sohra is making progress in the commercial production of cement from the modernized plant, though power failure is a cause of concern which disrupts its steady functioning.

Moreover, in the long run, non availability of coal, a major source for production of cement is staring at the cement plant.

During a visit to the site on Saturday, MCCL managing director Sanjay Goyal and other officials informed that 300 to 350 metric tonnes of cement are produced currently though the capacity is 600 metric tonnes. Earlier on Thursday, the production had touched 400 metric tonnes.

However, if tripping of power takes place, it affects the smooth functioning of the plant, thereby causing undue delay in the cement production as one hour load shedding in Sohra area is still in force, Goyal said.

Though the captive power plant is an option to tide over the load shedding and disruption of power supply at MCCL, non-availability of coal is a hurdle for setting up of thermal captive power plant.      While MCCL is marketing Ordinary Portland Cement (OPC) 43 grade, the rivals have Portland Pozzolana Cement (PPC).

The MCCL officials said while other companies add 15% fly ashes in one bag of cement, MCCL does not use fly ashes, and hence the state owned cement plant is in an advantageous position.

It was on September 24 this year that the MCCL started commercial production of cement with online monitoring as stipulated by the Central Pollution Control Board.

As part of reducing expenditure, as many as 126 employees took voluntary retirement, while there are currently over 400 employees.

To further reduce the expenditure, the government has already outsourced limestone mining and packaging of cement.

The MCCL (formerly Assam Cements Limited) which started functioning in 1966 had many break downs.

After Meghalaya was formed in 1972, it was under the sole control of the State government.

Till 2007, the MCCL was making profit, but since 2008 following a major break down, the State government had planned modernization of the plant which took almost eight years.

The cost of modernization of MCCL was a whopping Rs 145 crore including bank loans. The bank interest alone went up to Rs 35 crore.

The State government in March this year had partially bailed out MCCL by releasing Rs 80 crore.

Though the employees are getting their monthly salaries, the backlog of pending salary is over 10 months.

Earlier in 2014, MCCL had to shut down its operation after the ban on rat hole coal mining in the State.

Subsequently, the State government had written to the Union coal ministry last year for its nod to have coal linkages from Assam, but it is yet to be approved by the Centre.

MCCL can sustain itself for another six months as coal has been stored after the NGT allowed transportation of extracted coal.

Once the coal is exhausted, the only option before the State government will be to buy coal from the open market.

Source:Theshillongtimes