The Union Cabinet Chaired by the Prime Minister approved certain reforms to boost employment generation and exports in the made-ups sector that has been facing challenges in the international market due to high costs of production, non-refund of State levies, high tariff barrier when compared to the competing nations such as Pakistan, Vietnam, etc.
The reform package includes 10 per cent enhanced capital subsidy under Technology Upgradation Fund Scheme (TUFS), extension of Pradhan Mantri Paridhan Rozgar Protsahan Yojana (PMPRPY) Scheme 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, Rebate of State Levies (ROSL) by way of enhanced Duty Drawback, relaxed labour norms such as increased over time up to 100 hours, optional EPF, etc. The interventions are expected to boost exports and create employment for up to 11 lakh persons in the next three years.
M Senthilkumar, Chairman, The Southern India Mills’ Association, thanked Prime Minister, Union Textile Minister and Minister of State (I/C) for Commerce and Industry for considering the representation made by the Association and including the made-ups sector under the Rs 6,006 crore special export package announced for the garment sector during June 2016. He has highly appreciated the strenuous efforts put in by Ministry of Textiles under the dynamic leadership of Union Minister for Textiles Smriti Irani.
For full report, read January 2016 edition of ITJ.