The Deputy Chief Minister informed the House that presently all the three Plants of JKCL have been closed since, 2019, due to poor power supply leading to regular interruptions in the operations causing a huge loss in production of the Plant besides non-availability of sufficient working capital.
He said that lack of proper maintenance was causing regular break down to the Plant and machinery besides several unforeseen factors like September 2014 flood and unrest of 2016 and 2019 Covid lockdown in the valley adversely affected the performance of the company. He added that huge losses were other reasons for complete closure of the plant operations. He further said that the company has been burdened by its own liabilities on account of salaries/bills raised by the contractors and various departments, CP Fund of employees, GST liabilities, etc.
The Deputy Chief Minister said that presently, the JKCL is under the process of disinvestment. He added that in view of non viability of revival of JKCL, the Administrative Council of Union Territory of J&K vide Administrative Council Decision No. 113/15/2021 dated 19.10.2021 gave in-principal approval for complete sale of the JKCL and its assets on as-is where-is basis, through strategic disinvestment and exploration of the options for e-auction from the qualified bidders.
The Deputy Chief Minister said that pensionary benefits for the retired employees of JKCL have been worked out and projected in the revised budgetary provisions for the current financial year 2024-25. However, the 6th Pay Commission benefits have been implemented for the employees, he added.
