Tuesday, September 29, 2020
 News Details
Revive state PSU JKCL an asset of the state economy
Save JKCL and generate employment here

By Satish Mahaldar

The Reconciliation, Return and Rehabilitation of Migrant Kashmiri Pandits is condemning the moves to undermine the assets of Jammu and Kashmir. There seem to be sinister moves to push profit making ventures into loss making liabilities and force non- J&K people/organisations over the ventures on the name of revival and redevelopment.
The case of Jammu and Kashmir Cements Ltd. (JKCL), a Jammu and Kashmir government owned PSU, is today an example of how profit-earning ventures can be destroyed by nepotism, mismanagement and corruption.
The JKCL, a profit making venture of the state government, is an example of abject mismanagement, lack of vision and apathetic attitude of the government. Because of this, the PSU has gone down the hill. For the past 16 months the employees have not been paid. How difficult it must be for the families to live can be anybody’s guess. The employees time and again have been knocking on the doors of the administration but so far nothing has been done. The employees are even unable to pay the school fees of their children. Even the retirees have not been paid their dues since 2015. It is a total apathy on the part of the state government to have pushed the employees to a state of penury and helplessness.
After Article 370 was abrogated, it was decided by the Centre that the industries will be set up and the locals will get the preference. But, on the ground, the situation does not seem to be anywhere near. No industrial policy had been yet framed for J&K. And whatever industrial infrastructure is existing currently, even that is being destroyed. It seems that a situation is being created to show that only outsiders can help revive and rejuvenate things here. This is not true. Government had promised employment generation, but if the existing industries are choked, how can the youth in J&K get the jobs?
The fact is that the government if willing can save the plant which is an asset to the state economy. And help save the present employees. Let an example be created out of the JKCL that can not only provide for the sUnion territory but also to the rest of the country. Thi can be turned into a profit venture PSU.
But we fear that designs may be to declare the PSU sick and hand it to some outsider for making profits. This is the situation of all most all state PSU’s .
The question is what happened to the once profit making PSU? What went wrong with the PSU that it has lost its money and its employees are reduced to penury?
Jammu & Kashmir Cements Ltd. was incorporated as a fully owned Government Company in December, 1974 and in April 1982 it started its commercial production with Brand Name as 'Jhelum Brand Cement’. The JKCL has been supplying quality cement to Government Departments as well as the private market.
• Since 2014 the PSU has been losing heavily. The chief reasons are the appointment of untrained and unprofessional people to the key posts in the PSU. All these have been political appointments with little knowledge and commitment, who believed in only milking the cow.
• Two new plants were set up in Srinagar and Sambha (Jammu). The tenders for the construction were given to people who were politically connected. The construction was substandard and incomplete. The employees, however, started the units but the capacity was only half of the set target.
• It is a pity that till date no action has been taken against the private contractors who did a substandard work and left the project incomplete.
• Today the liability upon the JKCL is Rs 304 crores and it is growing day by day.
• Its employees have not been paid since March 2019.

Proposal for Resuscitating JKCL

Kashmir has rich deposits of high quality lime stone which help in production of quality cement. The need is to revive the JKCL project and help not only the employees but also create an example of self –reliance.

• JKCL has huge assets which can be utilised for generating resources to save the plant. If the government is not capable of bailing the plant out, then its assets can be mortgaged to the Banks & generate requisite funds.
• Its total assets include land/plant & machinery/movable immovable assets/residential colony/vehicles/ Heavy earth movers, etc.
• Total Land 1,272 kanals out of which 250 kanals are lying vacant.
• 88.10 hectares of lime stone mining land is also allotted to JKCL.
• Market value as per valuation report of 2018 is Rs 500crore which may have appreciated.
• The PSU has a potential of earning bulk profits after adjustment of all expenditure because JKCL has immunity from Govt. to sell cement to all Govt Depts.
• The RM cost of Khrew plant per MT is Rs 5,000 whereas the selling price of cement as on date is Rs 9,000/per MT.
• The RM cost of the Samba plant as of now is Rs 6,000/per MT. The selling price is Rs 9,000/per MT.
. Immediate removal of non-technical people from JKCL management & induction of technical people so as the plant becomes profitable.

RRRM urged J&K Govt to act upon immediately to make JKCl Operational & Release pending salaries of the employees & save precious life’s of the j&k state. While Abrogating article 370 last year , Time & again Honorable Prime minister , Home minister promised to nation & to people of J&K they would ensure , Rights of the people , Land, jobs would be protected at all cost. Let us win the hearts Rather than betray. Since most of the youth is unemployed & are idle they had become victim of drugs let we all channelize the energy of youth in building nation & save precious lives

(The writer is the Chairman,Reconciliations,Return & rehabilitation of Migrants)

(Disclaimer: The views, observations and opinions expressed in above write up of Scoop News are strictly author's own. Scoop News does not take any onus or liability for the veracity, accuracy, validity, completeness, suitability of any of information in the above given write up. The information, facts or figures appearing in the write up in no way manifest the position, standpoint or stance of Scoop News and the Scoop News does not assume any encumbrance or answerability of the same. All disputes are subject to the exclusive jurisdiction of competent Courts and Forums in Jammu City Only)

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