JK cements struggle for survival as liabilities cross 100 crore

KL Report

SRINAGAR

Once a debt-free, cash-rich company, the State owned Jammu and Kashmir cements limited (JKCL) has now become a pauper fighting for survival as the company is facing severe financial crisis.

In a shocking revelation the cement plant situated at Khrew is defunct from last 3 weeks as the company is not in a position to purchase coal, raw material and pay salaries to its 800 employees to make the plant run continuously.

“The company has failed to pay the salaries of around 800 employees from last three months, which is worth 40 crores. Company is also indebted to various financial institutions and vendors to pay huge amounts aggregating Rs. 50 crores,” one of the officials of the company wished anonymity told KNS.

He revealed that during past two months liabilities have increased from Rs 50 crore to 100 crore and cautioned that if the condition remains same there is every possibility of closer of this prestigious plant.

Another senior official of the plant who is working in finance section of JK cements confirmed that liabilities in JK cements have crossed 100 crore . “Pending bills of loan from banks and other financial institutions is 60 crore, while as pending amount of vendors is16 crore. The arrears of employees is 24 crore and salary 6 crore including the 2 crore pending amount of retire employees,” the officials said and added that with each passing day the financial health of the Plant is worsening.

The sources in the corporation told KNS that from last few years the company has derailed from its path, due to the flawed policies of management and has been rendered as a loss generating unit.

The employees of the corporation urged Chief Minister to intervene and frame a strong policy for revival of J&K cements ltd.

“We demand that Chief Minister Mufti Mohammad Sayeed should intervene to look into all the unlawful activities of the corporation. The CM should also direct all government executing agencies to lift and purchase cement only from J&K Cements Ltd as per the cabinet order,” .

It is pertinent to mention here that inquiry report by former Chief Minister Omar Abdullah had unearthed a mega Scam of Rs 100 crore in state-owned JK Cements Limited.

The inquiry report had held former managing director, JKCL, responsible for illegal appointments, purchasing of sub-standard items costing over Rs 100 crore losses to the JKCL, besides misleading the government on commissioning of Samba grinding plant.

The insiders blamed that despite, number of complaints against the mismanagement of the corporation the NC congress government were least bothered.

J&K Cements Limited (A J&K Govt. undertaking) was established in the year 1978. From its inception the company had always been in profit and was considered one of the most profitable PSU in J&K State. The company had continuously paid huge dividends towards State Govt

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