Ishtiyaq Kar
Srinagar Jan 01 (KINS): Jammu and Kashmir Industries Limited (JKI), a key corporation in the Union Territory, is grappling with a severe financial crisis.
With a rich asset base and a history of providing employment in the silk and wool sectors, JKI’s financial health has been undermined over the years due to rising operational costs, reduced government purchases, and unexpected liabilities.
“The corporation was compelled to pay unanticipated retirement benefits amounting to Rs 17 crore, further straining its finances. Moreover, the non-payment of land compensation by various departments, totaling Rs 210.59 crore for approximately 700 kanals of land transferred, has exacerbated the crisis. “The Directorate of Industries and Commerce, Kashmir, alone owes JKI an amount of ₹198.34 crore,” according to details accessed by the news gathering agency KINS.
The financial crunch has reached a critical point, with employees not receiving salaries for the past five months. “Outstanding salaries are projected to reach Rs 12.60 crore by the end of FY 2024-25. JKI has urgently sought the release of outstanding land compensation for 662 kanals of land amounting to Rs 198.34 crore from the Administrative Department to alleviate its financial distress,”.
In another development as per KINS, the Joinery Mills in Pampore, established 50 years ago, faces operational stagnation.
“Modern machinery, purchased in 2017 at cost of Rs 3 crore, was relocated to Baghi Ali Mardan in anticipation of a foreign investment deal that eventually fell through. Currently, the machinery lies in disrepair, and employees at the unit remain idle. Workers have urged the government to return the machinery to Pampore and restart operations, emphasizing the mill’s potential to contribute to the region’s economy”. (KINS)
JKI faces financial crisis Deptts owe crores, employees without salaries
