The INS News
No Result
View All Result
  • Home
  • News
    • Regional
    • Srinagar
    • Jammu
    • National
    • World
  • Business & Economy
  • Multimedia
    • Photo Gallery
    • Video Gallery
  • Health
  • Jobs & Careers
  • Press Releases
  • Blog
  • Home
  • News
    • Regional
    • Srinagar
    • Jammu
    • National
    • World
  • Business & Economy
  • Multimedia
    • Photo Gallery
    • Video Gallery
  • Health
  • Jobs & Careers
  • Press Releases
  • Blog
No Result
View All Result
The INS News
No Result
View All Result
Home News Jammu

AC approves disinvestment proposal for JKCL

INS Desk by INS Desk
October 9, 2022
A A
AC gives nod to Jammu and Kashmir Public University Bill

SRINAGAR, OCTOBER 9: After exploring all possibilities for revival of the Jammu and Kashmir Cements Limited, the Administrative Council (AC) which met here under the chairmanship of the Lieutenant Governor, Manoj Sinha, approved the proposal for disinvestment of Jammu and Kashmir Cements Limited

RELATED POSTS

Joint security conference held for ensuring incident-free Yatra: Army

Night Temperature Rises As MeT Predicts Dry Weather To Continue In Jammu & Kashmir

JKBOSE class 12th result: girls excel again

Rajeev Rai Bhatnagar, Advisor to the Lieutenant Governor and Dr. Arun Kumar Mehta, Chief Secretary, J&K attended the meeting.

The disinvestment in the JK Cements was necessitated as the company was not able to sustain and manage its finances properly and maintain efficiencies of operations over the period of time. The company was also not able to fully exploit the potential and sustain stiff competition in the market despite having dedicated limestone mining leases at its disposal.

Inspite of enjoying economy of scales, the company failed to show requisite growth and generate cash flows and operating margins during the last more than two decades.

The company despite having assured demand from Government against advance payments has not grown even marginally over the long period of time and has rather shown sharp decline in its production and revenues from 2012-13 on wards. Managerial and financial inefficiencies, coupled with failure to exploit locational advantage, has made the company defunct further depreciating plant and machinery without any resultant productivity.

The company had not only accumulated losses but is also burdened with liabilities on account of salaries and outstanding wages and payments in addition to default in statutory deductions like CP fund, GST etc.

Earlier also the Administrative Council vide its decision No. 113/15/2021 dated 19.10.2021 had given in-Principle approval for complete sale of JK Cements Limited by exploring the option of ascending e-auction and an authorization to utilize 240 kanals of land adjacent to Khrew Plant at Industrial Estate.

Buy JNews
ADVERTISEMENT

The Interested Bidder should have a Minimum Net-worth of Rs.250 Crore. The Interested Bidder should have a net positive EBITDA in at least three out of the immediately preceding last five financial years. Eligible Entities are permitted to form a Consortium to participate in the Transaction. The maximum number of members, including Lead Member, in a consortium can be four.

Key principles and actions underlying the recommended disinvestment modality includes 100% ownership in JKCL in favour of a private company/consortium. Further all the assets of JKCL on an as-is-where-is basis, along with approvals and licenses (including mining license) will be transferred as part of the share purchase sale.

It was further decided that the Government of J&K will take over all employees of JKCL and the Acquirer will be responsible for staffing requirements to get the plant operational. Moreover all legacy and material liabilities will be carved out and assigned to the Union territory.

All the pre-bid requirements including renewal of lease in favour of the Corporation, power availability, finalization of accounts and their audits etc. shall be completed before the start of auction process. While disinvesting, it shall be ensured that the provisions of Mines and Minerals (Development and Regulation) Act, 1957and rules framed there under are not violated in any case. It was also decided that the process of reverse auction will be adopted for the purpose of disinvestment.

The step was expedient as the company has turned defunct for more than two years. The attempts of revival of the company have failed in absence of fund flow that could have paved way for the revival of the Company.

ShareTweetSend
INS Desk

INS Desk

Related Posts

Joint security conference held for ensuring incident-free Yatra: Army
Jammu

Joint security conference held for ensuring incident-free Yatra: Army

June 10, 2023
Mainly Clear Weather Forecast After Days Of Rain In Jammu and Kashmir
Jammu

Night Temperature Rises As MeT Predicts Dry Weather To Continue In Jammu & Kashmir

June 10, 2023
Jammu

JKBOSE class 12th result: girls excel again

June 9, 2023
Specially-abled students University’s lifeblood, will provide them best facilities: KU VC
Jammu

Specially-abled students University’s lifeblood, will provide them best facilities: KU VC

June 9, 2023
Jammu

3 ‘Key Conduits’ of Sunderbani Narco-Militancy Case Apprehended: Army

June 9, 2023
Jammu

AAI Introduces ‘drop and go’ facility to address ‘delays, hassles’ at Srinagar Airport  

June 9, 2023
Next Post
CS takes first hand appraisal of progress on Jmu-Sgr highway

CS asks traffic authorities to clear stranded trucks on Sgr-Jmu Highway within 24 hrs

Minor boy killed in leopard attack in Rajwara Kupwara

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *




Mehbooba directs in time completion of projects

Mehbooba directs in time completion of projects

June 19, 2017

321 candidates in electoral fray in Phase II: ECI

November 30, 2020
Aug 1, 1990: When 12 civilians including 2 cops fall prey to bullets

VDC member’s son kills his 8-year-old cousin in accidental fire in Kishtwar

January 7, 2021

About

Indian News Service (INS) is the first registered online news portal from the state of Jammu & Kashmir. Our creative team consists of like-minded and socially concerned team of media professionals who carry decades of experience in their field of profession at their back. Our core values have pillars in honesty, empathy, credibility, equality and integrity.

More

© 2022 INS News - Designed by GITS.

No Result
View All Result
  • Home
  • News
    • Regional
    • Srinagar
    • Jammu
    • National
    • World
  • Business & Economy
  • Multimedia
    • Photo Gallery
    • Video Gallery
  • Health
  • Jobs & Careers
  • Press Releases
  • Blog

© 2022 INS News - Designed by GITS.