India : Cabinet okays reforms to boost jobs in made-ups sector

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Home / Knowledge / News / Textiles / Cabinet okays reforms to boost jobs in made-ups sector

Cabinet okays reforms to boost jobs in made-ups sector

08
Dec '16

The Union Cabinet chaired by prime minister Narendra Modi has given its approval to the reforms to boost employment generation and exports in the made-ups sector. This is expected to boost employment by creating jobs for up to eleven lakh persons, lead to increase in exports and enhance benefits to the workers in the textile and apparel sector.

The Cabinet has approved four interventions in a time bound manner within the approved budget of Rs 6,006 crore for the apparel package with the objective of creating large scale direct and indirect employment of up to 11 lakh persons over the next three years in the made-ups sector, an official statement said.

The first intervention is providing production incentive through enhanced Technology Upgradation Fund Scheme (TUFS) subsidy of additional 10 per cent for made-ups similar to what is provided to garments based on the additional production and employment after a period of 3 years.

Second is extension of the Pradhan Mantri Paridhan Rozgar Protsahan Yojana (PMPRPY) Scheme (for apparel) to made-ups sector for providing additional 3.67 per cent share of Employer's contribution in addition to 8.33 per cent already covered under Pradhan Mantri Rozgar Protsahan Yojana (PMRPY) for all new employees enrolling in EPFO for the first three years of their employment as a special incentive to made-ups sector.

Third is extension of Rebate of State Levies (ROSL) (for apparel) Scheme to made-ups sector for enhanced Duty Drawback on exports of made-ups.

Finally, the Cabinet has approved simplification of labour laws, by increasing permissible overtime up to 100 hours per quarter in made-ups manufacturing sector, and making employees' contribution to EPF optional for employees earning less than Rs 15,000 per month.

The made-ups sector is the second largest employment generator after apparel in the textile value chain. It includes several home textile products like blankets, towels, bed sheets, pillow covers, curtains, and other articles including zari and embroidery articles. (RKS)

Fibre2Fashion News Desk – India

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