The government, according the order no 89-IND of 2016 dated 5-04-2016, has directed all its departments to strictly adhere to the purchase of cement from JK Cement Limited only and in extreme cases purchase it from open market.
"…opt for open market only after J&K Cements Limited is unable to supply the requisite quantity and after obtaining non-availability certificate," reads the order.
However, the order has set a quality rider for the JK Cements as well.
"It (JK Cements) will ensure that the supply of the cement is of standard quality," says the order issued by the Commissioner/ Secretary to the government for Industries and Commerce Department.
Managing Director of the corporation, Atul Sharma told Greater Kashmir that the decision would boost the sales.
"The government has huge requirement of cement for different construction projects in the state, declaring JK cements as first preference will go a long way in its revival. Government has given us a target of Rs150 crore, highest ever in 35 years of history of JK cement," he said.
The government has also directed treasury officers not to entertain the bills on account of the cost of cement in favour of any supplier without observing the requisite terms and conditions as laid down in the government order.
According to an official of the corporation, the production of cement has increased to 600 tones per day (tpd) from earlier 275 to 300 tones a day.
"We are planning to increase it to 800 tpd after fifteen days when another Klin will start functioning and by December we expect to produce 12,000 tons per day," the official said.
JK Cements has been going into losses from last two years, as well as the production of the plant had come down.