Jammu and Kashmir Cement's Samba plant still not fully operational

Jammu and Kashmir Cements Ltd's (JKCL) Samba grinding and packaging unit, which was commissioned in September 2015, is still not fully operational. Output was recorded at just five per cent of its performance guarantee during a recent test, claims the Daily Excelsior.

Initial construction of the 300tpd factory, which was overseen by India-based Ashoka Gears on a turnkey basis, was completed two years later the planned opening January 2013, resulting in a corporate loss of INR1600m (US$25.2m), according to reports in the Daily Excelsior.

After commissioning the plant operated at only 14 per cent of rated capacity in 2015-16 and at 19 per cent in 2016-17, while the latest report gives a performance rating of five per cent.

The Daily Excelsior further reports that Ashoka Gears has been in dispute over payments for extra works on the facility.

JKCL has since cancelled the operations contract with local company Balaji, following strong protests from employees and officers.