NEW DELHI: Government today approved reforms in the apparel Made-ups sector, aimed at creating large scale direct and indirect employment of up to 11 lakh persons over the next three years and boosting exports.
The decision was taken at a meeting of the Union Cabinet chaired by Prime Minister Narendra Modi here.
The reforms have been approved within the approved budget of Rs 6,006 crore for the apparel package which was announced earlier this year.
"With the renewed financial support, exports in Made-ups sector are expected to increase by USD 2.8 billion over next three years. Enhanced Duty Drawback Rate will cover all state government levies and lead to additional USD 1 billion exports & 0.8 lakh new jobs in three years," Union Textiles Minister Smriti Irani tweeted.
She said the capital investment subsidy rate for made-ups unit has been increased to 25 per cent with value cap revised to Rs 50 crore.
The interventions are expected to boost employment in the textile sector and create employment for up to 11 lakh persons, lead to increase in exports and enhance benefits to the workers in the textile and apparel sector.
These include 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.
It also includes extension of 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.
"Labour Reforms will encourage both workers and employers to explore vast opportunities that made-ups sector has in store," Irani said.
The reform interventions also include extension of Rebate of State Levies (ROSL) (for apparel) scheme to made-ups sector for enhanced duty drawback on exports of Made-ups.
Moreover, labour laws have been simplified 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.
"Textile Industry welcomes the govt's initiative to support the Made-ups sector. This will help India achieve a triple-of creating huge employment, earning forex and creating traction for fabrics and yarn sectors.
Since the maximum sourcing for made-up sector from domestic industry, it will also help in the Make in India initiative," Binoy Job, Secretary General, Confederation of Indian Textile Industry (CITI) told PTI.
The made-ups segment of textiles include products like bedsheets, blankets, curtains, crochet laces, pillow covers, towels, zari, embroidery articles and other articles.
It is the second largest employment generator after apparels in the entire textiles value chain.