Jammu and Kashmir Industries Limited (JKI), which started with 15 industrial units in 1963 is on the verge of collapse.
The activities are now limited to four units only. Rest of the units have either died down or, are sick due to administrative mismanagement. The ailing JKI, therefore cause a loss of 18 crore annually to the state exchequer. The units were engaged in manufacturing of textiles, resin, leather, woollen fabrics, wooden goods etc. Although there is great scope for the leather industry but the government could not set the process into motion since 1963. Similarly the wool industry could not make a major headway. A study says that the ministers have been treating the units as rehabilitation centres for their political workers, and kith and kin. The bureaucrats have always taken a lion's share. Right now, the undertaking is providing employment to 1050 persons which is inclusive of 180 persons on deputation in various Government departments. The JKI has poorly performed over the years on productions and sales front. The value of production during 2000-01 was recorded to the tune of Rs. 21.24 crore, in 2002-03 it was Rs 33.45 crore but it showed decline to only Rs. 11.73 crore in 2012-13 while in the current financial year the production value has been recorded to the tune of Rs. 9.28 Crore. Similarly the sales were to the tune of Rs17.22 crore during 2001-02 and in subsequent years, it started decreasing quite sharply and reached to only Rs. 3.64 crore in 2008-09 and it fell to Rs. 2.63 crore in 2010-11. With the failure of JKIL production and sales it 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. During 2000-01 it incurred loss of Rs 21.79 crore, in 2001-02 the loss increased to Rs 36.22 crore, in 2002-03 incurred loss of Rs 42.86 crore in 2012-13 the loss was Rs 16. 04 crore, in 2013-14 the loss was Rs 17. 69 crore. The government has to wake up and do the needful to revive the JKI.