The Cherra Cement closure process has moved forward after the Meghalaya Cabinet approved the winding up of the state-owned Mawmluh Cherra Cements Limited (MCCL). The decision also clears Rs 24.43 crore in outstanding sales tax and royalty liabilities to help complete the formal shutdown.
Chief Minister Conrad K Sangma announced the decision on October 13, 2026. He said the government had settled the dues owed to employees. The latest approval addresses the company’s remaining liabilities and aims to simplify the winding-up process without creating an additional financial burden for the state government.
Cherra Cement closure covers Rs 24.43 crore in dues
The Cabinet approved the write-off of two major liabilities linked to MCCL. These include approximately Rs 8.9 crore in pending sales tax dues and Rs 15.53 crore in royalty liabilities.
Together, the amounts total Rs 24.43 crore. The write-off forms part of the government’s effort to resolve outstanding obligations and complete the company’s closure.
According to Sangma, MCCL is a government-owned company. Therefore, the pending liabilities would otherwise involve financial transfers between the company and various state government departments.
The decision is intended to simplify the accounting process and avoid unnecessary transfers within the state government. However, the write-off concerns the specified tax and royalty liabilities, rather than a fresh payment of Rs 24.43 crore to the company.
The Cabinet’s approval marks another step towards formally winding up the enterprise after years of operational difficulties.
Employee dues settled before Cherra Cement closure
The state government has also addressed the financial obligations owed to MCCL employees. The settlement follows the introduction of a special industrial closure scheme designed to provide compensation and financial relief to eligible workers.
In January 2025, the Meghalaya government notified the One-Time Special Industrial Closure Scheme for MCCL. The scheme covered employee compensation, gratuity, leave encashment and outstanding payments, alongside provisions for settling liabilities to other stakeholders.
The government subsequently released financial assistance in instalments to meet its commitments. In July 2026, Meghalaya Times reported that the final instalment of the employee settlement had been released, completing the planned Rs 90 crore package.
Consequently, the Cabinet’s latest decision follows the employee settlement and focuses on the remaining liabilities that need to be addressed before the company can complete its winding-up process.
Why Cherra Cement closure became necessary
MCCL’s closure follows years of operational challenges and unsuccessful efforts to restore sustainable production. The company was originally incorporated as Assam Cements Limited in 1955 and was renamed Mawmluh Cherra Cements Limited in 1974.
Its cement plant at Mawmluh, near Sohra in Meghalaya, began commercial production on November 15, 1966. Over time, the company expanded its facilities, adding kilns in 1979 and 1985.
However, rising operating costs, high power consumption and environmental challenges affected the older wet-process plant. The facility was decommissioned in August 2014.
The government later commissioned a 600-tonne-per-day dry-process plant in September 2016 at a reported cost of Rs 142.97 crore. Despite that investment, operational difficulties and low capacity utilisation undermined the plant’s financial viability.
Production eventually stopped in March 2020. The state government later concluded that revival was not feasible because of financial, operational and environmental constraints.
What the Cabinet’s decision means for Meghalaya
The Cherra Cement closure represents a significant change for one of Meghalaya’s oldest state-owned industrial enterprises. The latest approval aims to remove outstanding accounting obligations that could otherwise complicate the formal winding-up process.
Moreover, the decision highlights the financial challenges governments face when public-sector enterprises cannot sustain their operations. Although the company had a long industrial history, years of difficulties prevented it from maintaining production.
The government has sought to address the consequences of the shutdown through employee compensation and the settlement of outstanding obligations. Meanwhile, the write-off of the specified liabilities is intended to avoid unnecessary financial transfers between government entities.
However, the Cabinet’s approval should not be confused with confirmation that every administrative step has already been completed. The formal winding-up process must still proceed in accordance with the applicable requirements.
Cherra Cement closure marks end of an industrial chapter
The Cabinet’s decision brings Meghalaya closer to completing the closure of Mawmluh Cherra Cements Limited. Settled employee dues and the approved write-off of Rs 24.43 crore in tax and royalty liabilities address two important parts of the process.
The plant’s history reflects both the state’s industrial ambitions and the difficulties of sustaining manufacturing operations amid financial and environmental pressures.
Overall, the latest move provides a clearer route towards the company’s formal winding up. The focus will now remain on completing the required procedures and managing the next steps following the shutdown of the long-standing state-owned cement enterprise.
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