The Union Cabinet has approved a package of incentives for the ‘made-ups’ sector to increase exports and create additional direct and indirect employment of up to 11 lakh over the next three years.

The measures include extending additional subsidy under the technology upgradation fund scheme, enhancing employers’ contribution in the Provident Fund scheme, increasing duty-drawback on exports and simplification of labour laws.

Made-ups are articles manufactured or stitched from any type of cloth, other than a garment such as bed-sheets, cushion covers, lamp-shades etc.

As per the package approved by the Cabinet on Wednesday, made-ups will be provided production incentive through enhanced Technology Upgradation Fund Scheme (TUFS) subsidy of additional 10 per cent similar to what is provided to garments based on the additional production and employment after a period of three years, according to an official release.

The Pradhan Mantri Paridhan Rozgar Protsahan Yojana Scheme, currently only for the apparel sector, will now be available also for the 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 the scheme for all new employees enrolling in EPFO for the first three years of their employment as a special incentive.

The Rebate of State Levies (ROSL) Scheme, which is available for the apparel sector, will be extended to the made-ups sector for enhanced duty drawback (scheme for reimbursement of inputs used in exports) on exports.

Labour laws have also been simplified for the made-ups sector. Permissible overtime has been increased to 100 hours per quarter while EPF has been made optional for employees earning less than ₹15,000 a month.

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