 Early Times Report
Srinagar, Mar 17: Jammu and Kashmir government on Monday said J&K Cements was shut down due to multiple reasons, including below-par productivity per employee ratio, poor power supply, and production losses.
In response to a question from MLA Hasnain Masoodi, the concerned minister said several factors contributed to the decline of JKCL.
Presently, all three plants have been closed since 2019 due to the following reasons such as insufficient working capital, lack of proper maintenance, and unforeseen events like the September 2014 floods, the 2016 unrest and the 2019 COVID-19 lockdown, all of which halted plant operations for extended periods.
These challenges resulted in massive financial losses and burdened the company with liabilities related to salaries, contractor bills, employee provident funds and GST obligations, the minister said.
In view of the non-viability of JKCL's revival, the Administrative Council of the Union Territory of J&K, under the chairmanship of the Lieutenant Governor, approved the complete sale of JKCL and its assets on an "as-is where-is" basis through strategic disinvestment and e-auction.
The J&K Pollution Control Committee (J&KPCC) imposed a moratorium on the establishment and registration of new air-polluting industries in Khrew (District Pulwama) and Khonmoh (District Srinagar) for two years.
The J&K Pollution Control Committee imposed a moratorium on the establishment and registration of new air-polluting industries in Khrew, District Pulwama, and Khonmoh, District Srinagar, for two years. This decision was reviewed on December 20, 2023, and reaffirmed on January 1, 2024, stipulating that the moratorium would remain in effect for cement plants, stone crushers, brick kilns, mining operations, and hot mix plants until the annual average Air Quality Index (AQI) falls below 100 or the CEPI score drops below 60. Regular monitoring of ambient air quality in these areas will be conducted.
The minister also said that the retirement and pensionary benefits for retired JKCL employees have been incorporated into the revised budget for the 2024-25 financial year.
Although the 6th Pay Commission benefits have been implemented, the 7th Pay Commission could not be enforced due to the company's poor financial condition and the decision to disinvest, the minister said, adding that J&K Cements Limited faced continuous losses from 2013 to 2019, including approximately Rs 16.92 crores in 2013-14, Rs 26.27 crores in 2014-15, Rs 23.59 crores in 2015-16, Rs 31.75 crores in 2016-17, Rs 16.61 crores in 2017-18 and Rs 42.44 crores in 2018-19. |
