Spinfed employees to get ₹5.07 crore as layoff wages

state government has sanctioned ₹5.07 crore as layoff wages for more than 1,000 employees working at the now defunct three units of Rajasthan State Spinning and Ginning Mills Federation Limited (Spinfed).

The government will also accommodate 689 eligible Spinfed employees in the education department.

The three units of Spinfed— Gulabpura started in 1972, Hanumangarh started in 1984 and Gangapur started in 1985— incurred losses of more than ₹ 100 crore. The three units were integrated under Rajasthan Cooperative Spinfed Mills Limited (RCSML) in 1993. The profit making units incurred losses after 2012-13 due to old machines and adverse market conditions. The units were closed down in November 2016 after a cabinet decision.

State cooperative minister Ajay Singh Kilak said more than 1,000 employees of the three units will be given layoff wages from September 2016 and for ₹5.07 crore has been sanctioned. In a week’s time, the amount will be disbursed to the employees.

The employees were demanding payment of layoff wage, and in the interest of their families, the state government sanctioned the amount, he said.

For the remaining 689 eligible employees, the finance department has sanctioned six months interim arrangement for deployment in education department against deputation. The employees on deputation will be adjusted on vacant posts.