SRINAGAR: The Government of Jammu Kashmir has confirmed that JK Cements Limited (JKCL) is currently undergoing a strategic disinvestment process, following an Administrative Council decision dated 19 October 2021. The process has been delayed due to ongoing legal proceedings at the National Company Law Tribunal (NCLT), Chandigarh, where JKCL was admitted into the Corporate Insolvency Resolution Process (CIRP) in August 2023 following a petition by operational creditor Konkan Agro Marine Industries Pvt. Ltd.
According to official responses to an unstarred question by MLA Hasnain Masoodi, the Union Territory administration has executed a settlement agreement with the operational creditor in July 2024. The Resolution Professional filed a withdrawal application with NCLT, with the next hearing scheduled for 13 April 2026 for the formal withdrawal of CIRP proceedings.
The government has reiterated that the disinvestment of JKCL will be carried out on an “as-is-where-is” basis, exploring options such as e-auction to attract qualified bidders. All employees of the corporation have been deployed to various government departments to continue receiving their salaries during the process.
On the issue of local stakeholders, the government has stated that efforts are being made to ensure that the residents who had provided land for the JKCL project are not deprived of their legitimate benefits. Additionally, 240 kanals of JKCL land have been handed over to JK SIDCO for the establishment of an industrial estate, which will be allotted under the JK Industrial Land Allotment Policy 2021–30. This initiative is expected to benefit unemployed youth of Khrew town through the setting up of small-scale industrial units.
Regarding employee benefits, the JKCL Board has decided not to extend the 7th Pay Commission benefits due to the company’s ongoing financial losses and disinvestment process. However, 6th Pay Commission retirement dues are being cleared: Rs 33.97 crore has already been released for retirees of 2017, and the remaining payments for other retirees and 653 in-service employees—totaling Rs 66.61 crore—are in process and expected to be disbursed during the current fiscal year 2025–26.
The disinvestment of JKCL marks a significant step in the Union Territory’s efforts to restructure its industrial assets while attempting to safeguard employee interests and local community benefits.
