Kashmir Inc opposes JKCL ‘outsourcing’
The Valley’s apex business Chamber, KCCI, has assailed proposed “outsourcing” of Jammu and Kashmir Cements Limited, saying the government “is planning to handover prestigious enterprise to some blue-eyed business families.”
Talking to us, President Kashmir Chamber of Commerce and Industry, Sheikh Ashiq said, “It is unfortunate that government is considering outsourcing of JKCL, which till recently was a profit earning PSU in JK.”
“JKCL is the largest state industrial undertaking. The enterprise would help stabilize the demand of cement in the local market,” Ashiq said.
He said when the private cement factories in the state “are earning huge profits”, there should therefore be no reason that the JKCL should have faced losses.
Pertinently, the state government recently dropped hints that it was planning “outsourcing of JKCL in view of losses reported in the PSU.”
“We would oppose the government’s decision to outsource this unit,” he said, adding that in the garb of outsourcing or privatization, “the government seems to be planning to handover this enterprise to some blued business families.”
Ashiq said, instead of “out sourcing” or privatizing the JKCL, “we suggest to the government to constitute a fact-finding committee which would identify the factors responsible for taking this enterprise into red.”
The chamber suggested that in case the state government feels the factory’s financial position is deteriorating due to its salary bill, “the surplus staff could be diverted elsewhere or given Golden Hand Shake.”
The KCCI demanded that the JKCL in the meantime be provided with the required technical staff for its factories to run smoothly and profitably.
“It is also felt that once back on track, the JKCL can help a great deal to stabilize the exorbitant cement prices prevailing in the market which is important in the wake of rehabilitation/ reconstruction process after September 2014 floods.”
He said that reports about privatization become all the more suspicious in view of vigilance enquiries and the recent gutting of JKCL.
“We wonder why JKCL is running in losses when the cement industry is thriving in and outside the state. Although during the last few months the cement prices throughout the country have witnessed considerable decline, they keep on soaring in Kashmir,” Ashiq said.
