Vijayawada: The state government is mulling to implement the voluntary retirement scheme (VRS) within the cooperative sugar mills across the region, reports The Times of India.
Identification of eligible employees has been completed, and the disbursement of their VRS payments has commenced.
A total of seven sugar factories within the cooperative sector have faced closure over the past six years, with facilities in Chittoor, Tirupati, Kadapa, Kovvur, Jampani, and Anakapalli being rendered defunct. The proposal for VRS in these factories was originally put forth during the TDP regime, estimating a financial outlay of approximately ₹108 crore to settle employee payments under the scheme. A cabinet subcommittee, formed by the TDP government, recommended the adoption of VRS across all seven factories.
As per news report in TOI, in 2022, the state government issued orders for the implementation of the VRS in cooperative sugar factories. Despite this, a shortfall in funding hindered the scheme’s execution. To date, the government has disbursed ₹69.86 crores and requires an additional ₹38.54 crore to fulfill its financial commitment to the employees.
A total of 2,394 employees spread across these six cooperative sugar factories are slated to benefit from the VRS. While the Kadapa sugar factory ceased operations in 2008, the others became inoperative in 2012, 2014, and 2015, respectively.
