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| Kashmir Unrest: JKCL at verge of closure, faces Rs 50 Cr loss | | Hundreds of employees likely to lose their jobs | | Muhammad Mukaram
Early Times Report
Srinagar, Oct 12: The state government had to work hard to infuse new life into J&K Cements Ltd to ensure the corporation is saved from becoming defunct, which was on the verge of closure, but over three month long unrest in Kashmir has taken a serious toll on the JKCL again as it has witnessed a huge loss of Rs 50 crore so far. If the situation continues to remain grim, the JKCL may turn bankrupt and hundreds of its employees may lose their livelihood.
"JKCL which is yet to overcome the enormous losses it faced during past several years is again at verge of closure. If the sale of cement doesn't start soon the company may again suffer Rs 5 crore loss as 5400 ton cement is lying in the stores. Besides cement 60,000 tons of Klinker worth Rs 45 crore is lying in the Klinker yard," a top official of JKCL told Early Times. "The peak season of the construction work in Kashmir has come to an end now as the winter is coming. The cement and Klinker will be all wasted if the strike continues. Although the JKCL faced so many ups and downs from past many years but the present situation is grim," the official added.
Due to official restrictions and shutdown calls given by separatists JKCL has incurred huge losses. "Unrest in Kashmir is threatening the very existence of the Jammu and Kashmir Cements Ltd. Around eight hundred employees of the corporation are without salaries from past three months," the official added.
According to officials, the corporation, which year after year has been witnessing decline in the production of cement was now gaining its grip as the production was touching the sky and the cement Plant situated at Khrew was giving cement production beyond its expectations for past one year.
They said that the plant had witnessed rise in the production and revenue in 2015-16 compared to 2014-13-12.
"Due to the trouble in the valley since July 08, many of my employees have not been able reach the factory and it is causing a big loss in cement production," Managing director JKCL, Atul Sharma told Early times.
"JKCL is only dependent on sale and supply of cement to government funded projects and departments. Now there is no sale of cement for past three months. We are not in a position to release the salaries of the employees," Atul added.
"As per the balance sheets of the company, the expenditure incurred on account of employees' salary in 2011 was Rs 27.4 crore which increased by Rs 1 crore in 2012 to Rs 28.3 crore and now at least Rs 30 crore, are needed to clear the salary bill," the official added.
Not only the JKCL but Jammu and Kashmir's tourism, and public and private sector undertakings have suffered enormous losses due to the more than three month old unrest in the Valley.
Earlier, the statistics released by the state's industries and commerce and tourism department pointed out to both revenue and production shortfalls. The net revenue losses of various public sector undertakings in the Valley alone has accumulated to Rs 9.07 crores, with accumulated turnover and production deficit of approximately Rs 123 crores. Likewise, the estimated net revenue losses suffered by the private sector during the last 42 days have accumulated to Rs 286.44 crores with turnover and production losses accumulating to Rs 1,911 crores.
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