Cabinet approves reforms for made ups to benefit 11 lakh workers

Cabinet approves reforms for made ups to benefit 11 lakh workers 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 textile sector and create employment for upto eleven lakh persons, lead to increase in exports and enhance

benefits to the workers in the textile and apparel sector," said an official release. 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 the additional production and employment after a period of 3 years. On the 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 this year.