State releases ₹143 crore towards VRS for MPM workers

The State government has released ₹143 crore in the second and final phase towards the voluntary retirement scheme (VRS) and severance package for the workers serving with Mysore Paper Mills (MPM), a public sector unit in Bhadravati.

It may be mentioned here that the State government had halted production in MPM from November 2015 citing the losses incurred by the firm. In August 2017, it had announced allocation of ₹345 crore for VRS and severance package that includes gratuity, bonus dues, dearness allowance and increment arrears, and salary during the lay-off period. The total workforce of MPM is at 2,409 of which 2,031 workers had opted for VRS.

Of the ₹345 crore announced, ₹202 crore was released in the first phase in March this year. In the State government’s budget of the year 2018-19, an amount of ₹147 crore was earmarked for clearing dues towards VRS and severance package of MPM workers. Owing to the announcement of election for State Assembly and formation of new government, there was a delay in releasing the amount.

C.S. Shivamurthy, president, MPM Workers’ Association told The Hindu that ₹143 crore to be paid in the final phase had been credited to the account of MPM on September 24. After completion of the necessary formalities related to auditing, the money would be disbursed among the employees, he said.

Regarding the notices issued by the management of the firm to employees who had opted for VRS to vacate the residential quarters, he said that some workers have requested to be allowed to continue in the quarters on a lease basis and the issue has been brought to the notice of the management.

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Printable version | Apr 4, 2020 12:29:07 PM | https://www.thehindu.com/news/national/karnataka/state-releases-143-crore-towards-vrs-for-mpm-workers/article25099716.ece

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