Reforms to Boost Made-ups Sector

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The Union Cabinet chaired by Prime Minister Modi has given its approval to the reforms to boost employment generation and exports in the Made-ups Sector.

The following interventions have been approved 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 upto 11 lakh persons over the next three years in the made-ups sector:-

1. Providing production incentive through enhanced Technology Upgradation Fund Scheme (TUFS) subsidy of additional 10% for Made-ups similar to what is provided to garments based on the additional production and employment after a period of 3 years.

2. Extension of Pradhan Mantri Paridhan Rozgar Protsahan Yojana (PMPRPY) Scheme (for apparel) to made-ups sector for providing additional 3.67% share of Employer’s contribution in addition to 8.33% 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

3. Extension of Rebate of State Levies (ROSL) (for apparel) Scheme to made-ups sector for enhanced Duty Drawback on exports of Made-ups.

4. Simplification of labour laws:

(i) Increasing permissible overtime up to 100 hours per quarter in Made-ups manufacturing sector,

(ii) Making employees’ contribution to EPF optional for employees earning less than Rs 15,000 per month.

The interventions are expected to boost employment in the textile sector and create employment for upto eleven lakh persons, lead to increase in exports and enhance benefits to the workers in the textile and apparel sector.

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