Odisha Cabinet Approves Liquidation of SPINFED Spinning Mills to Clear Liabilities

State allocates ₹200 crore for one-time settlement to facilitate land transfer for future textile and apparel investments

The Odisha Cabinet has approved the liquidation of spinning mills operated by the Odisha State Co-operative Spinning Mills Federation Ltd. (SPINFED), paving the way for liability clearance and the transfer of land to the Odisha Industrial Infrastructure Development Corporation (IDCO) for future industrial use.

The Cabinet approved a ₹200 crore phase provision to settle outstanding liabilities of the defunct units through a one-time settlement (OTS) with creditors and other financial institutions. The measure is intended to remove legal and financial encumbrances and facilitate the transfer of land for the establishment of employment-intensive industries, particularly in the textile and apparel sectors.

The spinning mills, operating under the Odisha State Co-operative Spinning Mills Federation Ltd. (SPINFED) and registered under the Odisha Co-operative Societies Act, 1962, had become non-operational over time due to financial distress, obsolete machinery, and other operational challenges. As revival was considered unviable, the State Government decided to liquidate the units to make the assets available for new industrial investments.

The Cabinet also approved a revised English spelling of 641 towns across 26 districts, following recommendations made during the colonial period. Under the revision, Aul will now be spelled as Aali, while Balasore will be replaced by Baleshwar. Chief Minister Mohan Charan Majhi observed that the previous spellings were inconsistent with Odisha phonetics and adversely affected Odia cultural identity (Odia Asmita).

In another decision, the Cabinet approved imposing a minor penalty on government employees who fail to submit their Annual Property Returns (APR) by 31 January each year, noting that many employees do not file the returns within the prescribed timeline.

Additionally, the Cabinet approved a bid amount of ₹175 crore for the construction of the Underground Sewerage System for Town Planning Scheme (T.P. 1, 2 & 3) under the jurisdiction of the Bhubaneswar Development Authority (BDA) on an Engineering, Procurement & Construction (EPC) contract. The project includes Operation & Maintenance for a period of five years.