Proposals formulated from time to time fail to yield results
Employees-related liabilities yet to be settled
Mohinder Verma
JAMMU, July 8: Despite multiple revival attempts and years of official reviews, there is still no end in sight to the financial crisis plaguing Jammu & Kashmir Minerals Limited (JKML), a Government-owned company established to exploit mineral resources and promote mineral based industries in Jammu & Kashmir.
Follow the Daily Excelsior channel on WhatsApp
Established with the objective of harnessing vast mineral potential, JKML has, over the years, slipped into deep financial distress due to a combination of mismanagement, underutilization of assets and lack of long-term planning.
Official sources told EXCELSIOR that while internal reviews have periodically highlighted the challenges facing the Corporation, no comprehensive turnaround plan has been executed so far “There have been meetings, paper-based proposals and partial steps but substantial revival of the Corporation has remained a distant dream”, they added.
“The company possesses mining leases for minerals like gypsum, coal, limestone and sapphire. However, most of these resources remain grossly underexploited either due to lack of investment or procedural bottlenecks”, they said, adding “in particular, the sapphire mines of Paddar, once regarded as among the finest in the world, have been lying untapped for years for the reasons best known to those who remained at the helm of affairs in the Corporation”.
The intensity of the financial crisis in the Corporation can be gauged from the fact that it doesn’t have resources even to clear the liabilities of the employees. This is notwithstanding the repeated statements that Corporation is taking steps to increase the production of gypsum and coal to clear the liabilities, sources said while disclosing that at present the Corporation is having pending gratuity liability of approximately Rs 4.50 crore.
Likewise, the liability on account of pending Provident Fund contributions stands at Rs 56.77 crore. “The Coal Mines Provident Fund Organization had imposed penalty and damage charges amounting to Rs 26.2 crore but the Corporation is not in a position to clear the same”, sources said, adding “the JK Minerals Ltd had taken up the matter with the Commissioner of the Coal Mines Provident Fund Organization seeking a waiver of interest and damage charges but there is no response from the Organization till date”.
Several months back it was officially announced that Corporation will shortly conduct an e-auction to sell the available stocks at Kalakote to clear outstanding liabilities. However, the exercise has not reached the logical conclusion till date, sources said while disclosing that Corporation has a liability of about Rs 26 crore on account of 6th Pay Commission arrears in addition to pending electricity charges of around Rs 40 crore for the coal mines at Kalakote.
It is pertinent to mention here that the Board of Directors of the Corporation, in its meeting held on April 18, 2023, had approved the implementation of the 6th Pay Commission with the condition that arrears will be paid only to the extent of 50% of the operating profit of each financial year.
“As the Corporation has not generated any profit during the past several years it has not released the 6th Pay Commission arrears”, sources said.
When contacted, Pawan Sharma, Managing Director of JK Minerals Ltd confirmed that no reply has been received from Coal Mines Provident Fund Organization for waiver of interest and damage charges to the tune of Rs 26.2 crore.
In reply to a question regarding e-auction of available stocks at Kalakote, he said, “process is still on. Such an exercise takes time”.
However, sources stressed, “there is a need for a clear-cut revival strategy, backed by capital investment and professional management. Without that, the situation is unlikely to change”, adding “unless decisive steps are taken by the Government, the JKML’s financial woes are likely to deepen further”.
Follow our WhatsApp channel
