Suhail Bhat
Srinagar, Feb 13: The Government today said that Jammu and Kashmir Cements Limited (JKCL) is undergoing strategic disinvestment and has received in-principle approval for the complete sale of the company and its assets on an “as-is-where-is” basis, including the possibility of an e-auction from qualified bidders.
In a written reply to a question raised by Hasnain Masoodi in the Legislative Assembly, the Government said the disinvestment process is being pursued by the Union Territory administration, but the transaction has not yet been finalised because of legal issues.
The House was informed that the National Company Law Tribunal Chandigarh passed an ex-parte order on August 22, 2023, placing JKCL under the Corporate Insolvency Resolution Process (CIRP) following a petition filed by an operational creditor, Konkan Agro Marine Industries Pvt. Ltd.. A Resolution Professional was subsequently appointed.
The Government said a settlement agreement between the UT Government and the operational creditor was executed on July 12, 2024, after continuous follow-up. In line with the agreement, the Resolution Professional has filed a withdrawal application (Form FA) before the NCLT. The next hearing on the withdrawal of CIRP proceedings is scheduled for April 13, 2026.
After exploring revival options, the Administrative Council granted in-principle approval for the complete sale of JKCL through strategic disinvestment, including the option of an e-auction to qualified bidders.
On employees, the Government said all JKCL staff have been deployed to various departments and organisations for utilisation of their services and are drawing their salaries there.
Regarding land, the Government informed the Assembly that 240 kanals belonging to JKCL have been handed over to Jammu and Kashmir State Industrial Development Corporation (J&K SIDCO) for the establishment of an industrial estate. The land will be allotted in accordance with the J&K Industrial Land Allotment Policy 2021-30.
The Board of Directors of JKCL has decided not to extend Seventh Pay Commission benefits at present because of mounting financial losses and the poor financial condition of the company.
On retirement benefits under the Sixth Pay Commission, the Finance Department has authorised and released Rs. 33.97 crore. Leave salary and gratuity for JKCL employees who retired in 2017 have been released, while payments for remaining retirees are under process and are to be cleared during the current financial year 2025-26 after completion of documentation.
The Government further said the total liability of salary arrears for 653 JKCL employees stands at Rs. 66.61 crore, of which Rs. 35.13 crore is payable to retirees and Rs. 31.48 crore to in-service employees deployed in various departments. “Payment of these arrears is under process,” the Government added.
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