Govt intends for complete sale of J&K Cements Limited after 47 yrs
Forty-seven years after it was incorporated, the Union Territory government had intended for the complete sale of Jammu and Kashmir Cement Limited.
The government has further called for a global invitation for comments on a draft request for proposal for the disinvestment of a 100 per cent equity stake of the government of Jammu and Kashmir in Jammu and Kashmir Cements Limited.
The Jammu and Kashmir Cements Ltd (JKCL) was incorporated in the year 1975 under the Companies Act, 1956 as a government-owned company with an authorized capital of Rs.60.00 crore.
The primary objective of the creation of JKCL was to reap the benefits of the rich deposits of Limestone in the Khrew belt for the manufacturing and sale of cement. The company started its operation with the commissioning of its first integrated plant at Khrew, Pulwama with a capacity of 600TPD in 1982.
An advertisement has been issued in this regard has been issued by Jammu and Kashmir Industries and Commerce Department, a copy of which lies with TNN, which reads, “JKCL is a fully government-owned company under the Administrative Control of Department of Industries and Commerce, Government of Jammu and Kashmir”.
“It is engaged primarily in the manufacture and sale of cement. Jammu and Kashmir Cements Limited (JKCL) has 1200 tons per day of installed integrated cement manufacturing facility in Khrew, Pulwama and a 300-ton-per-day grinding unit in Samba. The company also has access to a Limestone Mine in Khrew”, the advertisement reads.
“The Government of Union Territory of Jammu and Kashmir intends for complete sale of Jammu and Kashmir Cements Limited, by way of strategic disinvestment of the equity shareholding of Government of UTJK (100%) in its undertaking the Jammu and Kashmir Cements Limited (JKCL), along with full management control. This disinvestment process is being implemented through a competitive bidding route”, it reads.
Further, the advertisement reads, “In order to get access to Final RFP and Virtual Data Room, the interested bidders would be required to submit a Tender fee of amount INR 10,00,000 + GST as applicable) (Indian Rupees Ten Lakhs + applicable GST) through NEFT and sign a confidentiality agreement”.
As per the draft for inviting comments global invitation for a request for proposal for disinvestment of JKCL, “The objective of this draft PIM and RFP for Disinvestment of 100% stake of UT administration of Jammu and Kashmir in Jammu and Kashmir Cements Limited is to elicit comments and suggestions from the interested bidders on the draft RFP”.
“As the UT administration of Jammu and Kashmir is conducting a disinvestment exercise for the first time, it intends to hear from all prospective bidders their views on the transaction structure, bid documents, and any other suggestions they might have to ensure that each stakeholder viewpoints are adequately captured to ensure that the transaction documents/ process is comprehensive and consultative”, it reads.
It is pertinent to mention here that two new plants of JKCL, one integrated plant at Khrew, Pulwama with a capacity of 600TPD and one grinding unit at Samba, Jammu with a capacity of 300TPD were commissioned in 2010 and 2015 respectively.
The company has rights over a Limestone mine in Khrew spread over 88.1 hectares, with an estimated net mineable reserve of around 10.4 million tonnes. Over the years, JKCL’s main source of revenue has been the sale of cement to various Government departments and PSUs.
