Govt approves reforms to boost jobs, exports in ‘made-ups’

CABINET DECISIONS

THE Centre on Wednesday 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 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 $2.8 billion over next three years. Enhanced Duty Drawback Rate will cover all state government levies and lead to additional $1 billion exports & 0.8 lakh new jobs in three years,” textiles minister Smriti Irani tweeted.

She said the investment subsidy rate for made-ups unit has been hiked to 25 per cent with value cap revised to Rs 50 crore. The interventions are expected to boost employment in the textile sectorandcreateemploymentfor 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 Madeups 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 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 for employees enrolling in EPFO for the first three years of employment.