Cabinet clears easier labour laws, tech upgradation for textiles sector

Source: The Economic Times, Dec 08, 2016

NEW DELHI: The Union Cabinet on Wednesday approved a set of reforms, including simplified labour laws and technology upgradation for the made-ups sector. “The interventions are expected to boost employment in the textiles sector and create jobs for up to 11 lakh persons, lead to increase in exports and enhance benefits to the workers in the textiles and apparel sector,” said an official release.

Made-ups, which includes products like towels and bedsheets, is the second largest employer in the textiles sector after apparel. The government will provide production incentive through enhanced Technology Upgradation Fund Scheme (TUFS) subsidy of additional 10% for made-ups similar to what is provided to garments based on additional production and employment after three years.

On labour laws front, the government increased the permissible overtime up to 100 hours per quarter in made-ups manufacturing sector besides making employees’ contribution to EPF optional for employees earning less than Rs 15,000 per month.

These incentives are part of the Rs 6,006-crore package announced for the apparel sector in June . “The textiles industry welcomes the government’s initiative to support the made-ups sector. This will help India in…creating huge employment, earning foreign exchange and creating traction for the fabrics and yarn sectors.

Since the maximum sourcing for made-up sector is from the domestic industry, it will also help in Make in India plan,” said Binoy Job, secretary general, Confederation of Indian Textile Industry(CITI).

The government will give additional 3.67% share of employer’s contribution in addition to 8.33% covered under Pradhan Mantri Rozgar Protsahan Yojana for all new employees enrolling in EPFO for the first three years of employment as a special incentive to made-ups sector.

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