The Chief Minister's Office of Odisha announced on Saturday, 13 June 2026 that the Odisha State Cabinet, chaired by Chief Minister Mohan Charan Majhi, approved a set of decisions aimed at reviving the textile sector, expanding the handicrafts cadre, and amending state employee conduct rules. The cabinet meeting, held under CM Majhi's chairmanship, approved budget provisions to clear pending dues of closed cooperative spinning mills, power-loom units, and sizing units — a move the government described as essential to 'reviving the textile sector and strengthening industrial infrastructure, investment, and employment creation.'

Context

Odisha's cooperative spinning mills and associated textile units have remained largely non-operational for years, leaving workers with unpaid dues and the sector in decline. The state government's decision to approve budgetary allocations specifically for clearing these arrears marks a direct fiscal intervention to address long-pending liabilities. While the exact quantum of dues has not been disclosed by the government, the cabinet's formal approval signals a structured approach to settling these obligations.

Policy Backdrop

Odisha governments have periodically announced measures to arrest the decline of cooperative textile units since the early 2010s, but sustained revival has remained elusive. The BJP-led government that took office in June 2024 under CM Majhi has emphasised industrial revival and employment generation as central policy priorities. Saturday's decisions align with that stated agenda, combining fiscal support for closed units with parallel administrative reforms. The cabinet also approved the Odisha Handicrafts Amla Service (Method of Recruitment and Conditions of Service) Rules, 2026, and expanded the cadre strength from 108 to 111 posts. Additionally, the Odisha Government Servants' Conduct Rules, 1959 were amended, though the specific nature of those amendments has not been made public.

Stakeholders and Impact

The primary beneficiaries of the dues-clearance decision are workers and creditors of the closed cooperative spinning mills, power-loom units, and sizing units across the state. Handloom weavers and artisans dependent on these supply chains stand to gain from any operational revival that follows. The cadre expansion under the new 2026 Handicrafts Service Rules — adding three posts to the existing 108-strong cadre — will affect recruitment and service conditions for officials managing handicraft promotion in the state. The amendment to the 1959 Conduct Rules applies broadly to all Odisha state government employees, though the government has not specified which provisions were changed.

What's Next

The cabinet approvals now move to the implementation stage. The critical test will be the actual disbursement of budgetary funds to settle the pending dues of the closed textile units — a process that will be tracked in the next state budget cycle. Recruitment notifications under the newly framed Odisha Handicrafts Amla Service Rules, 2026 are expected to follow, which will determine how quickly the cadre expansion translates into on-ground staffing. Whether the dues clearance triggers any operational revival of the closed units, or remains a welfare measure for affected workers, will define the longer-term impact of Saturday's decisions.