Reducing wasteful expenditure

10/08/2020

The Jammu and Kashmir Government has proposed closure of J&K Small Scale Industries Development Corporation (SICOP), J&K Minerals Limited and J&K Industries Limited and privatization of J&K Cements Limited with a view to reduce wasteful expenditure being incurred by the Industries and Commerce Department in running loss making Public Sector Undertakings (PSUs)/ Corporations under the Department's control. The proposal to this effect was mooted by the Lieutenant Governor's Secretariat few months back with a view to cut down wasteful expenditure in running loss making Corporations in which the Industries and Commerce Department had been asked to close/merge some of the Corporations. The Department had initiated the process but suddenly Coronavirus pandemic broke out and administration's focus was shifted towards COVID control measures and the process will gain momentum when situation on Corona front stabilizes and the final call will be taken by the Industries & Commerce Department soon.
As earlier highlighted by Journey Line, SICOP will be closed and all the Industrial Estates presently managed by SICOP should be transferred to State Industrial Development Corporation (SIDCO). J&K Minerals will also be closed and the Mineral sites being managed by it be auctioned as per the norms. The Government proposed that J&K Cements Limited should be privatized after assessment of its assets in a transparent manner. Another proposal mooted by the Government regarding merger of J&K Handicrafts Corporation and J&K State Handloom Development Corporation has already been implemented by the Industries and Commerce Department.
The new Corporation has separate Directorates for both Jammu and Kashmir divisions. Proposal to close, privatize and merge some Corporations had been mooted by the Government few months back and a part of it was implemented with merger of J&K Handicrafts Corporation and J&K State Handloom Development Corporation but due to Coronavirus pandemic, rest part of it i.e. closure and privatization of other Corporations remained pending. This Government proposal to privatize and shut down some Corporations was part of reforms in Industries and Commerce Department. Now it will be wait and watch situation that how and when this transformation will take place.

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