Economy & Market
J&K Cement's production and revenue dip
J&K Cements (JKCL), the state-owned undertaking in the manufacturing sector, is witnessing steep fall in the production and the enterprise has been 'downsized' to a trading company, threatening its very existence.
J&K Cements has witnessed vertical fall in the production and revenue realisation for the first quarter of this fiscal compared to corresponding period last year.
During the first quarter (April 1 to June 30) of the 2011-12 fiscal, production of clinker from the plant was 43,000 metric tonne. However the figures have dipped to 22,000 metric tonne during first three months of the fiscal 2012-13.
Likewise, the sale of the cement during first quarter of last year was 39,000 metric tonne, but it has come down to 29,000 metric tonne for the corresponding period this year.
The situation has resulted in a sharp dip in revenue realisation too which is a concern. The revenue realised for first quarter of this year has been Rs 20 crore. Bureaucratic hassles and government neglect are cited as the reasons for the dilapidation of once flourishing Public Sector Undertaking (PSU) based in the Valley. The cement production at J&K Cement's plant at Khrew, on the city outskirts has fallen by almost 70 per cent of the targeted 1,200 metric tonne production per day. Instead of addressing the problem, JKCL authorities now ordering import of the clinker (semi-finished cement which is turned into final product) from outside the state has downgraded the PSU into trading company.
Interestingly the 96th meeting of Board of Directors of JKCL presided by its Chairman and Minister for Industries SS Slathia, on July 9 focused more on the 'achievements' of the Corporation in the past without seeking to address the mess in it.