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Freedom251 › Blog › Cherra Cement

Meghalaya approves Cherra Cement closure; ₹24.43 crore dues write-off remains unverified

By Freedom251 Team · · 3 min read

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Meghalaya has approved a special one-time plan to close Mawmluh Cherra Cements Limited (MCCL), according to a contemporaneous All India Radio bulletin. The government’s formal 2025 closure scheme provides a total outlay of ₹98,25,92,649 (about ₹98.26 crore) for specified employee, supplier and contractor liabilities. The separate claim that the Cabinet wrote off ₹24.43 crore in dues is not confirmed by the official notification or the bulletin available for this report.

What Meghalaya approved

The Commerce & Industries Department issued the “One-Time Special Industrial Closure Scheme for Mawmluh Cherra Cements Limited (MCCL) Unit, 2025” on 30 January 2025. The notification sets the scheme’s total financial outlay at ₹98,25,92,649. It is a closure and liability-settlement package, not evidence that a particular amount was written off.

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The government portal lists the measure as Notice IND.47/2024/69, released on 30 January 2025; the page was last updated on 3 September 2026. The Cabinet approval and a voluntary retirement offer for more than 250 employees were reported by All India Radio, which also said the government planned to sell MCCL’s assets.

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How the ₹98.26 crore package is allocated

Liability head Amount Scope stated in the scheme
Permanent employees ₹83,71,39,896 Includes Home Guard liabilities
Suppliers and contractors ₹7,73,08,345 Specified supplier and contractor dues
Former employees ₹6,81,44,408 Outstanding payments for 90 former employees
Total ₹98,25,92,649 One-time closure-scheme outlay

The scheme uses 31 December 2024 as its liability cut-off. Payments are planned across three financial years in a 40:30:30 ratio. The notification therefore describes a staged settlement commitment rather than an immediate single payment.

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Why the Cherra Cement unit is being closed

MCCL’s plant has been non-operational since March 2020. The government notification says “the MCCL’s revival is not feasible due to environmental, financial and operational constraints.” Low capacity utilisation and continuing operating problems had made the unit financially unviable.

MCCL began as Assam Cements Limited, incorporated on 20 May 1955. It was renamed Mawmluh Cherra Cements Limited in 1974 and began commercial production on 15 November 1966. A 600-tonnes-per-day dry-process plant was commissioned in September 2016 at a stated total cost of ₹142.97 crore. The closure decision follows the failure of that operation to achieve sustainable production and finances, as assessed in the government scheme.

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What employees and other creditors are due

Employee provisions

The notification specifies several components for eligible employees:

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  • Salary compensation capped at 48 months of basic salary plus dearness allowance (DA).
  • Gratuity calculated under the Payment of Gratuity Act.
  • Leave encashment of up to 300 days.
  • Settlement of outstanding dues.
  • Applicable pay revisions.

The ₹83,71,39,896 permanent-employee figure includes Home Guard liabilities. A separate ₹6,81,44,408 provision covers outstanding payments to 90 former employees.

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Suppliers and contractors

The scheme earmarks ₹7,73,08,345 for supplier and contractor liabilities, subject to the scheme’s eligibility and 31 December 2024 cut-off. The documents do not provide a broader creditor-by-creditor schedule in the material available here.

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What is known about the ₹24.43 crore write-off claim

₹24.43 crore appears in the article title and is not independently substantiated by the retrieved official records. Neither the Meghalaya closure notification nor the All India Radio bulletin mentions that amount. They also do not identify a creditor category, accounting entry, waiver decision or other treatment corresponding to it.

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A write-off is not automatically the same as a closure-package payment. A write-off could mean a waiver, an accounting adjustment or another decision affecting a liability; the ₹98.26 crore scheme is expressly a package to settle specified obligations and provide employee benefits. Without a Cabinet minute, Finance or Industries Department order, or official release that states the ₹24.43 crore figure and its scope, the two amounts should not be added, compared as equivalent, or presented as separate parts of one package.

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What happens next

  1. Eligible liabilities are identified under the scheme’s 31 December 2024 cut-off.
  2. Approved payments are scheduled over three financial years using the 40:30:30 allocation.
  3. Employees are offered the specified compensation and statutory benefits, alongside the voluntary retirement plan reported by All India Radio.
  4. The state proceeds with disposal or sale of MCCL assets, as reported in the Cabinet bulletin.

The official record establishes the closure framework and its ₹98.26 crore outlay. It does not yet establish that Meghalaya wrote off ₹24.43 crore in dues or explain how such a figure would relate to the closure scheme.

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Cherra Cementclosure schemeIndustrial PolicyMawmluh Cherra CementsMeghalayapublic sector

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