Mancherial Cement Company assets to be auctioned, locals raise alarm
Residents of Mancherial, who gave away their lands for the establishment of the Mancherial Cement Company (MCC) in 1958, have expressed concern over the proposed auctioning of the plant’s assets by Indian Bank on January 12. The auction follows MCC’s failure to repay a Rs 54 crore loan.
Mancherial: Locals who gave away their lands for the establishment of Mancherial Cement Company (MCC), formerly known as Associated Cement Company (ACC), have expressed concern over the proposed auctioning of assets belonging to the cement manufacturer, scheduled for January 12.
The MCC plant was established on a sprawling 350 acres abutting the Hyderabad–Nagpur highway in the district headquarters, using advanced German technology in 1958, with an installed capacity of 1,000 metric tonnes per day. The Indian Bank recently issued notices to the management stating that the plant’s assets would be auctioned for failure to repay a loan of Rs 54 crore.
Scores of people from backward communities and weaker sections belonging to the town and surrounding Gadpur, Hajipur and Old Mancherial recalled that they had voluntarily sacrificed their agricultural lands for the company, hoping it would generate employment for locals and help the district emerge as an industrial hub. They said they were once proud of having played a vital role in the establishment of the plant.
“The management of the cement manufacturer transferred lands to certain traders of the town who bought the plant, citing operational losses a few years ago. It did not recognise the contributions of those who gave away their lands for the construction of the plant. We would have become millionaires had we retained the lands, considering the real estate boom in the district,” a farmer from Old Mancherial said, requesting anonymity.
The farmers and a family from Old Mancherial said they were still clueless about how their lands were transferred to the present management without their knowledge.
They alleged that certain elected representatives and leaders of MCC workers had assisted the then management in selling the assets to the present owners by influencing revenue officials. They feared that the lands could easily be converted into a real estate venture once the plant was closed.
Once known for producing some of the finest cement in the country, the plant has been on the brink of shutdown due to mounting debts caused by operational losses for over two decades, particularly since 2000.
Its condition further deteriorated following internal bickering among the promoters, who approached various courts, with around 20 cases pending against the management of MCC in different legal institutions.
