Huge losses, liabilities of workers force closure of 3 JKCL plants: Dy CM

Moratorium On Establishment Of Air Polluting Units In Khrew, Khonmoh Areas: Dy CM
Moratorium On Establishment Of Air Polluting Units In Khrew, Khonmoh Areas: Dy CM

Rs 158 cr loss to JKCL in 6 yrs since 2013

Moratorium on setting up of air polluting units

Gopal Sharma
JAMMU, Mar 17: Huge losses on account of breakdowns in the operation, mounting liabilities of the employees in terms of salaries and contractors’ bills besides moratorium imposed by the J&K Pollution Control authorities, forced the closure of three major cement plants of the Jammu & Kashmir Cements Limited at Khrew, Khonmoh in Kashmir and Samba in Jammu region.

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While replying to the question of National Conference Member Husnain Masoodi in the Legislative Assembly today, Dy Chief Minister Surinder Choudhary revealed that massive losses worth over Rs 157.58 crores were suffered by the Jammu & Kashmir Cements Limited (JKCL) since 2013-14 to 2018-19. Massive bills of the contractors were piled up and the salary and other pensionery benefits of the retired employees of the company also went on increasing and a huge liability was created. Frequent breakdowns in the operation of the plants was also one of the major factors behind this closure.

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The data provided by the Dy CM indicated that during the year 2018-19, the highest loss of Rs 42.44 crores was suffered by the JKCL while the sale turn over was Rs 59.33 crores. During 2017-18, the total loss was Rs 16.61 crores while the sale turnover during the same year was Rs 114 .01 crores; during 2016-17 loss worth Rs 31.75 crores and revenue/ sale Rs 87.26 crores; during 2015-16 loss worth Rs 23.59 crores, during 2014-15 Rs 26.27 crore loss, while during 2013-14 loss worth Rs 16.92 crores while sale turnover remained Rs 93.29 crores.
Giving details, the Dy Chief Minister said that lack of proper maintenance was causing regular breakdown to the plant and machinery besides several unforeseen factors like September 2014 flood and unrest of 2016 and 2019 COVID lockdown in the Valley adversely affected the performance of the company. He added that huge losses were other reasons for complete closure of the plant operations.
Choudhary further claimed that the JKCL had been burdened by its own liabilities on account of salaries/bills raised by the contractors and various departments, CP Fund of employees, GST liabilities, etc.
The Deputy Chief Minister further said the Jammu and Kashmir Pollution Control Committee (JKPCC) has imposed a moratorium on establishment and registration of new units of air polluting industries in Khrew, Pulwama, and Khonmoh in Srinagar of Kashmir division for a period of two years since 2021.
He added that the order, in this regard, was reviewed by the Committee on Dec 20, 2023 which vide its decision dated Jan Ist, 2024 resolved that the moratorium on establishment of new units shall remain in force only in respect of Cement plants, stone crushers, brick kiln, mining and hot mix plants till the annual average AQI falls below 100 or CEPI score falls below 60. All necessary steps shall be taken to regularly monitor the ambient air quality of Khrew and Khonmoh areas, he added.
The Deputy Chief Minister added that presently all the three plants of JKCL have been closed since, 2019, due to poor power supply leading to regular interruptions in the operations causing a huge loss in production of the plant besides non-availability of sufficient working capital.
He said that presently, the JKCL is under the process of disinvestment. He added that in view of non viability of revival of JKCL, the Administrative Council of Union Territory of J&K vide Administrative Council decision No. 113/15/2021 dated 19.10.2021 gave in-principal approval for complete sale of the JKCL and its assets on as-is where-is basis, through strategic disinvestment and exploration of the options for e-auction from the qualified bidders.
The Deputy Chief Minister said that pensionary benefits for the retired employees of JKCL have been worked out and projected in the revised budgetary provisions for the current financial year 2024-25. However, the 6th Pay Commission benefits have been implemented for the employees, he added.