Union Cabinet approves Reforms to boost employment generation and exports in Made-ups Sector

The Union Cabinet approved proposal of the reforms to boost employment generation and exports in the Made-ups manufacturing Sector.
It approved budget of Rs. 6,006 crore for the apparel package in a time bound manner. The main objective is generating direct and indirect employment of upto 11 lakh persons over the next three years the made-ups sector.

Following interventions have been approved

• Providing production incentive through enhanced Technology Upgradation Fund Scheme (TUFS) subsidy of additional 10% for Made-ups.
• Extending Pradhan Mantri Paridhan Rozgar Protsahan Yojana (PMPRPY) Scheme (for apparel) to made-ups sector.
• This extension will provide additional 3.67% share of Employer’s contribution in addition to 8.33% already covered under PMRPY for all new employees enrolling in EPFO.
• Extending Rebate of State Levies (ROSL) (for apparel) Scheme to made-ups sector for enhanced Duty Drawback on exports of Made-ups.
• Simplification of labour laws: (i) Increasing permissible overtime working hours 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.

Comment

The reforms and interventions are expected to boost employment in the textile sector especially in Made-ups manufacturing Sector. It will create employment for upto eleven lakh persons and lead to increase in exports.

Month: Current Affairs - December, 2016