The Jammu Kashmir administration has officially shut J-K Cements Limited (JKCL) and invited global bids for its sale, Greater Kashmir reported
Officials quoted by the newspaper said that the strategic disinvestment of JK’s (100 percent) equity participation in its venture, JKCL, coupled with complete managerial control, has received formal approval from the J&K administration.
“The JKCL is being sold, and the Industry and Commerce Department has invited bids. The deadline for interested parties to submit their proposals is March 17,” a senior Industries Department official said.
The past three decades, private cement manufacturing enterprises in J&K have prospered, while the government-owned company, which had the monopoly on being the first choice for cement purchasing in local development works, has experienced losses year after year.
According to a senior Industries Department official, a comparison of the costs incurred by JKCL and the private cement-producing plants shows that they are significantly different.
“As part of the disinvestment exercise, the management, and control of JKCL will be transferred to the successful bidder through a transaction structure which includes the purchase of shares of JKCL. By way of control of JKCL, the control of the entire business of JKCL (including mining rights and land currently with JKCL) will also stand transferred. J&K will also provide the necessary forest clearances from the Jammu and Kashmir State Forest Department, Ministry of Environment, Forest and Climate Change Government of India,” reads an official document.
JKCL was established in 1975 as a government-owned business with an authorised capital of Rs 60 crore under the Companies Act of 1956.
The main reason JKCL was founded was to take advantage of the plentiful limestone deposits in the Khrew belt for the production and sale of cement.
The company began operations in 1982 with the commissioning of its first integrated plant, which had a 600 TPD capacity, in Khrew, Pulwama.
One integrated plant with a 600 TPD capacity was established at Khrew, Pulwama in 2010, while a grinding unit with a 300 TPD capacity was opened in Samba, Jammu, in 2015.