JK CEMENTS PRODUCTION, REVENUE SLUMPS
Government Neglect Pushes Corporation Towards Ruin
Srinagar, July 23: It is official. JK Cements Ltd, a state owned undertaking in the manufacturing sector, has witnessed vertical fall in the production and revenue realization for the first quarter of this fiscal compared to corresponding period last year.
Sources revealed to Greater Kashmir that during the first quarter (April 1 to June 30) of the fiscal in 2011-12, production of clinker (semi-finished cement which is turned into final product) from the plant was 43000 metric tons. However the figures have dipped to 22000 metric tons during first three months of the fiscal 2012-13.
Likewise, sources said, the sale of the cement during first quarter of last year was 39000 metric tons, but it has come down to 29000 metric tons for the corresponding period this year.
Sources said the situation has resulted in a sharp dip in revenue realization too which is a concern. “The revenue realized for first quarter of this year has been Rs 20 crore while as the returns were Rs 26 crore for the first quarter of 2011-12,” sources said.
Last week Greater Kashmir reported in detail that due to the alleged negligence of the authorities at the JK Cements, all the four kilns producing cement were in dilapidated condition.
PSU has two plants with two kilns in each plant. Though the individual cement production capacity of each kiln is 300 MTS/day, the overall production has gone down by around 70 percent.
Sources said in view of low production and less revenue generation, JK Cements was in a “messy situation.”
The JKCL has a Board of Directors which is headed by its Chairman - Minister for Industries SS Salathia.
“In absence of any plan to revamp the Corporation, it seems a funeral is being prepared for performing its last rites,” sources said.
Sources said the authorities were presently “managing the show” in the JKCL with Rs 16.50 crore which was refunded to it as excise rebate for five years under the 2004 State Industrial Policy for its expansion program.
“This money could have been utilized for further expansion but since the PSU is running in losses it is used to manage the day-to-day affairs,” sources said.
He said due to growing demand for the cement, the JKCL authorities were ordering clinker from outside states including Rajasthan. “Nobody is addressing the real problem,” the source said.
He said last year the cement production revenue had crossed Rs 120 crore while the turnover was Rs 81 crore during 2010-11. “The sales are not expected to cross even Rs 90 crore this year that too when authorities are importing clinker from outside to hide their inefficiency,” the source said.
Lastupdate on : Mon, 23 Jul 2012 21:30:00 Makkah time
Lastupdate on : Mon, 23 Jul 2012 18:30:00 GMT
Lastupdate on : Tue, 24 Jul 2012 00:00:00 IST
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