In the wake of ongoing unrest in Kashmir, the local cement industry here has suffered an estimated Rs 300 crore loss, while the outside cement manufacturers are reaping dividends in the Valley.
Prior to unrest, the local production—both in private and public sector— would suffice the demand. However, the closure of the units due to the shutdown from July 9 has made Valley dependent on imports.
According to sources Kashmir gets cement, mostly of “substandard” quality, from the outside in the wake of closure of the local units here, which is sold at exorbitant rates.
A tax official informed that in the past 100 days, cement worth over Rs 100 crore has been imported in Kashmir.
As per local dealers, the cement produced in twin industrial hamlets – Khrew and Khonmoh on Srinagar outskirts here, is priced at Rs 375 per bag weighing 50 kg, while as the outside cement is being sold at Rs 600 to 700 a bag.
“There is a nexus between the outside companies and some unscrupulous elements in Kashmir who taking undue advantage of the current unrest are minting money and looting Kashmiris by selling substandard cement at exorbitant prices,” a cement plant owner said.
“This alliance between the outside manufacturers and local unscrupulous elements doesn’t want the local cement industry to resume operations. Even during relaxation hours announced by the separatist leadership our units are attacked,” he said, adding that the local plant owners “are threatened if they start operations, while there is no restriction on the sale and import of outside cement.”
The local unit holders said that they have incurred Rs 300 crore loss till now and if the situation continues to be so, some of units will be closed due to financial breakdown.
“It is a very difficult situation, on the one hand the local cement plants are closed and on the other, the outside companies are allowed to sell their cement at higher rates,” said another cement plant owner.
While Kashmir’s private sector is in disarray, the public sector units too are feeling the heat of the unrest, as the Jammu and Kashmir Cements Limited (JKCL) during past 100 days has recorded Rs 75 crore production loss bringing it on verge of closure, official informed.
