6 days ago
Rs50cr cleared for Nagpur weavers' dues, years after closure
Nagpur: In a major relief for over a thousand workers of the defunct Nagpur Weavers' Cooperative, the state cabinet has approved a proposal to allocate Rs50 crore from the proceeds of the organisation's land sale towards payment of solatium to its employees.
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The cooperative, which employed more than 1,100 workers before it shut down, left many in financial distress. The 20-acre land owned by the cooperative, located off Umred Road, was sold to the Maharashtra Housing and Area Development Authority (MHADA) for Rs177 crore. The sale was executed after securing consent from 685 of the 1,100-odd workers, with the primary aim of settling pending dues.
Of the total Rs62 crore owed to the workers, only Rs10 crore was disbursed in March 2019, according to Central Nagpur MLA Pravin Datke, who raised the issue in the state assembly.
A decision to clear the remaining dues was taken in July 2024, during the tenure of
as deputy chief minister. However, the move was stalled due to the enforcement of the election code of conduct. The cabinet finally cleared the Rs50 crore proposal on Tuesday.
Datke, who has long advocated for the workers' cause, said the demand was to clear all dues pending till March 2008. Despite meetings by the textile department in March 2008 and again in 2016, necessary approvals could not be obtained from the finance department at the time.
