x

Like our Facebook Page

   
Early Times Newspaper Jammu, Leading Newspaper Jammu
 
Breaking News :   After skipping his Choubarsi, Cong to observe death anniversary of Madan Lal Sharma | Amid chill, CM Omar stations himself in Kashmir to ensure relief | ‘South Indian cinema can promote J&K’s natural beauty’ | Income Tax Deptt serves notice to PDP MLA | Suspected TeM terrorist arrested in Bengal | Properties worth Rs 1.28 cr attached under NDPS Act | 3 held with arms in North Kashmir | CB produces challans against 18 accused | Trainee cop dies of bullet wound | Battling power cuts, Kashmiris fall back on Kangris | Annual Mahotsav 2024 showcases Swadeshi Spirit & Self-Reliance: Kavinder | Javed Rana inspects Gujjar Bakerwal hostel | Modi Govt builds on Vajpayee's legacy, strengthening India's global position: Rohiin Chandan | Trikuta Nagar Welfare Society Raises Alarm Over Rising Crime, Drug Abuse | DC Bandipora Inspects JKSSB Exam Centres, Reviews Arrangements | Keshav Chopra organises Free Health Check Up Camp | Congress to connect with roots, observe anniversaries of all top leaders | NDS Felicitates Eminent Artists at ‘Dogri Bhasha Mannata Dhiadda’ Celebration | Indian Army organised Mobile Medical Patrol | ADC Kupwara inspects JKSSB Examination Centres | PDP holds meeting in Habba Kadal zone deliberates upon several issues | Edu Deptt Hosts Debate & Painting Competition | Babu Rampaul reiterates demand for restoration of statehood to J&K | Absconder arrested after evading arrest for over a year | Crackdown on illegal mining; 5 vehicles seized: Reasi Police | Reasi Police launches verification drive of Sim vendors outlets | Bovine smuggling attempt foiled: 11 bovines rescued in Udhampur | Missing girl recovered, reunited with family in Kishtwar | DC Reviews JKSSB Examination Process | Freedom Society Sports, Martial Arts Championship Concludes | 578 Aspirants appear for JKSSB Examination | Free Multi-Speciality Health Checkup camp organized | KUT Judo Championship 2024 to be held in Jammu | JU organises workshop on “Research Methodology” | Equitable System | Back Issues  
 
news details
AC approves disinvestment proposal for JKCL
10/9/2022 11:04:02 PM
Early Times Report

SRINAGAR, Oct 9: After exploring all possibilities for revival of the Jammu and Kashmir Cements Limited, the Administrative Council (AC) which met here under the chairmanship of the Lieutenant Governor, Manoj Sinha, approved the proposal for disinvestment of Jammu and Kashmir Cements Limited
Rajeev Rai Bhatnagar, Advisor to the Lieutenant Governor and Dr. Arun Kumar Mehta, Chief Secretary, J&K attended the meeting.
The disinvestment in the JK Cements was necessitated as the company was not able to sustain and manage its finances properly and maintain efficiencies of operations over the period of time. The company was also not able to fully exploit the potential and sustain stiff competition in the market despite having dedicated limestone mining leases at its disposal.
Inspite of enjoying economy of scales, the company failed to show requisite growth and generate cash flows and operating margins during the last more than two decades.
The company despite having assured demand from Government against advance payments has not grown even marginally over the long period of time and has rather shown sharp decline in its production and revenues from 2012-13 on wards. Managerial and financial inefficiencies, coupled with failure to exploit locational advantage, has made the company defunct further depreciating plant and machinery without any resultant productivity.
The company had not only accumulated losses but is also burdened with liabilities on account of salaries and outstanding wages and payments in addition to default in statutory deductions like CP fund, GST etc.
Earlier also the Administrative Council vide its decision No. 113/15/2021 dated 19.10.2021 had given in-Principle approval for complete sale of JK Cements Limited by exploring the option of ascending e-auction and an authorization to utilize 240 kanals of land adjacent to Khrew Plant at Industrial Estate.
The Interested Bidder should have a Minimum Net-worth of Rs.250 Crore. The Interested Bidder should have a net positive EBITDA in at least three out of the immediately preceding last five financial years. Eligible Entities are permitted to form a Consortium to participate in the Transaction. The maximum number of members, including Lead Member, in a consortium can be four.
Key principles and actions underlying the recommended disinvestment modality includes 100% ownership in JKCL in favour of a private company/consortium. Further all the assets of JKCL on an as-is-where-is basis, along with approvals and licenses (including mining license) will be transferred as part of the share purchase sale.
It was further decided that the Government of J&K will take over all employees of JKCL and the Acquirer will be responsible for staffing requirements to get the plant operational. Moreover all legacy and material liabilities will be carved out and assigned to the Union territory.
All the pre-bid requirements including renewal of lease in favour of the Corporation, power availability, finalization of accounts and their audits etc. shall be completed before the start of auction process. While disinvesting, it shall be ensured that the provisions of Mines and Minerals (Development and Regulation) Act, 1957and rules framed there under are not violated in any case. It was also decided that the process of reverse auction will be adopted for the purpose of disinvestment.
The step was expedient as the company has turned defunct for more than two years. The attempts of revival of the company have failed in absence of fund flow that could have paved way for the revival of the Company.
  Share This News with Your Friends on Social Network  
  Comment on this Story  
 
 
 
Early Times Android App
STOCK UPDATE
  
BSE Sensex
NSE Nifty
 
CRICKET UPDATE
 
 
 
 
 
 
 
 
   
Home About Us Top Stories Local News National News Sports News Opinion Editorial ET Cetra Advertise with Us ET E-paper
 
 
J&K RELATED WEBSITES
J&K Govt. Official website
Jammu Kashmir Tourism
JKTDC
Mata Vaishnodevi Shrine Board
Shri Amarnath Ji Shrine Board
Shri Shiv Khori Shrine Board
UTILITY
Train Enquiry
IRCTC
Matavaishnodevi
BSNL
Jammu Kashmir Bank
State Bank of India
PUBLIC INTEREST
Passport Department
Income Tax Department
JK CAMPA
JK GAD
IT Education
Web Site Design Services
EDUCATION
Jammu University
Jammu University Results
JKBOSE
Kashmir University
IGNOU Jammu Center
SMVDU