Proving a huge burden on the state exchequer, Jammu and Kashmir Industries Limited has incurred Rs 450 crore losses in last 18 years.
Jammu and Kashmir Industries was incorporated in 1963 as government undertaking with an authorized share capital of Rs 20 crore and paid up capital of Rs 16.26 crore.
The undertaking started its activities with 15 industrial units which were engaged in manufacturing of textiles, resin, leather goods, woolen fabrics, wooden goods etc.
However, the company has not lived upto its expectation as out of these 15 industrial units, nine units stand already closed, four units are functional and two are non functional. Besides, it has incurred Rs 452 crore losses from fiscal year 2000-2001 to 2017-18.
As per economic survey, the JKI recorded losses of Rs 21.79 crore in 2000-01, Rs 36.22 crore in 2001-02, Rs 42.86 crore in 2002-03, Rs 42.30 crore in 2003-04, Rs 46.44 crore in 2004-05, Rs 47.04 crore in 2005-06, Rs 23.29 crore in 2006-07, 15.34 crore in 2007-08, Rs 28.97 crore in 2008-09, Rs 38.78 crore in 2009-10, Rs 28.28 crore in 2010-11, Rs 21.65 crore in 2011-12, Rs 16.04 crore in 2012-13.
Rs 8.94 crore in 2013-14, Rs 8.26 crore in 2014-15, Rs 8.63 crore in 2015-16, Rs 13.86 crore in 2016-17 and Rs 3.58 crore in 2017-18 ending October.
“The Company has been continuously running into losses due to various reasons including surplus staff, low productivity, obsolete and worn out machinery and equipment, closure of most of the units, non-availability of technical staff,” points out economic survey report.
“Both on production and sales front, the JKI has not performed well over the years due to variegated reasons. Although, the value of production recorded increase from Rs. 2124.16 lakh in 2000-01 to Rs 3234.10 lakh during 2015-16 but it now reduced to only Rs 1113.90 lakh in 2016-17.”
“The sales volume of the undertaking was of the order of Rs 1722.63 lakh during 2001-02 and in subsequent years, it started decreasing quite sharply and reached to only Rs. 364.17 lakh in 2008-09. Although, during 2009-10, the sales recovered marginally and stood at Rs. 409.89 lakh, but again fell to Rs. 263.18 lakh in 2010-11. However, it was encouraging that during the financial year 2017-18, JKI performed as the sales touched Rs. 1121.34 lakh ending Oct 2017,” it adds.
Both Silk Factory at Rajbagh and Government Woolen Mills at Bemina are under administrative control of JKIL.