ANNOUNCEMENT 07 Dec 2016

On 7 December 2016, the Union Cabinet of India approved several interventions for a period of 3 years to boost employment and export in the Made-ups sector. A majority of these interventions were announced earlier for the textile industry on 22 June 2016 and they have now been extended to the made-ups sector. Further, no additional budget allocation has been made for these interventions but it has been subsumed in the allocation for the textile package, which was INR 6000 crore (~USD 901.883 million).

NUMBER OF INTERVENTIONS

3

  • 3 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Official press release at Press Information bureau
"Cabinet approves Reforms to Boost Employment Generation and Exports in the Made-ups Sector " - 7 December 2016
http://pib.nic.in/newsite/PrintRelease.aspx?relid=155054

Rebate of State Levies
http://egazette.nic.in/WriteReadData/2017/174783.pdf

Amended Technology Upgradation Fund Scheme
http://texmin.nic.in/sites/default/files/ATUFS-Resolution-madeups.pdf

Inception date: 23 Mar 2017 | Removal date: 06 Mar 2019
Still in force

Export subsidy

Within the incentive package, the Ministry of Textiles has announced the Scheme for Rebate of State Levies on exports of made-up articles (the ROSL Scheme). The scheme provides refunds in the form of rebates of state-imposed levies on the export of made-ups. The Ministry's notification No. 12015/47/2016-IT published on 3 January 2017 notified the Scheme while a Notification of the same No. notified on 15 March 2017 specified rates of rebates. The rebate rates range from 2% to 4% of the FOB value with caps on maximum rebates of Rs. per kg. of exports. The rebate rates notified will be calculated on Free on Board value of the exported goods.

This Scheme will come into effect from 23 March 2017 and will be valid for a period of 3 years. The Scheme for Rebate of State Levies was already announced for the textiles sectors, except made-ups, in June 2016 (see related State Act).

The current Scheme has been rescindend and replaced with the Scheme for Rebate of State and Central Taxes and Levies on
Export of Garments and Made-ups with higher rates of Rebate, from March 2019 (see related State Act).

AFFECTED SECTORS

 
Inception date: 16 Mar 2017 | Removal date: open ended
Still in force

Tax or social insurance relief

The Pradhan Mantri Paridhan Rozgar Protsahan Yojana (PMPRPY) Scheme which was earlier available to the apparel sector has also been extended to the made-ups sector. Under the scheme, the government provides for the Employer's contribution of 3.67% towards the Employee's Provident Fund Scheme. This benefit is available for all new employees for the first three years of their employment in the made-ups sector.

The following sub-sectors are included under this scheme - 

1) Manufacture of curtains, bed covers and furnishing

2) Manufacture of crotcheted made up textiles goods, except apparel

3) Manufacture of mosquito nets

4) Manufacture of tarpaulin

5) Manufacture of blankets

6) Manufacture of other made-up textile articles, except apparel

Inception date: 13 Jan 2016 | Removal date: 31 Mar 2019
Still in force

Financial grant

In addition to a 15% Capital Investment Subsidy already provided under the Amended Technology Upgradation Fund Scheme (TUFS), an additional 10% capital subsidy has been approved for installation of eligible machinery in the made-ups sector. This 10% additional subsidy is capped at INR 20 crores (~ USD 3 million) and enhances the total subsidy available for such capital investments from INR 30 crores to INR 50 crores.

The amount of this additional subsidy will be disbursed after a period of 3 years, provided the made-up units applying for the subsidy meet their production and employment targets.