Initiatives like 39 per cent increase in allocation for remission of state levies (ROSL) in the Budget would help boost textile export, Textile Minister Smriti Irani said today.
The Budget allocation for ROSL scheme has been raised to to Rs 2,163.85 crore from Rs 1,555 crore in 2017-18.
Allocations under the technology upgradation fund scheme (TUFS) have also been increased by 15 per cent in the Budget, she said.
Irani said the Rs 6,000-crore package announced for apparel sector last year, and 39 per cent increase in ROSL would help push the exports.
The largest component of the package was ROSL to offset indirect taxes levied by states that were embedded in exports.
ROSL was over and above the duty drawbacks and other incentives like Merchandise Exports from India Scheme.
The minister added that in the past one year, the government has given the industry close to Rs 1,800 crore as a part of this package and a payment of Rs 300 crore is in the pipeline for this financial year.
She also said apparel and garment manufacturing centres in all northeastern states are operational except in Sikkim, where it is under construction.
In 2014, Prime Minister Narendra Modi announced an initiative for construction of these centres in all northeast states under North East Region Textile Promotion Scheme.
“At a cost of Rs 127 crore, these garment manufacturing centres are now functional,” she said adding the units have employed locals for apparel manufacturing.
“We want to encourage local population into formal employment. One of the biggest benefits of this package has been that we have seen 1.8 lakh garment workers now formally becoming a part of EPFO in the past one year. That means more and more formalisation is happening,” Irani added.
Further, the minister said reclassification of MSME and reduction of corporate tax by 5 per cent in the Budget will help the sector expand its manufacturing and encourage employability.
The textile ministry, she said, would organise the second round of ‘Hastkala Sahyog Shivirs’ from February 19-24.
“I have written to all members of Parliament and invited them to participate,” she said.
The first was held in October last year.
These camps help weavers and artisans to avail benefits under different schemes like MUDRA and yarn subsidy scheme.
Meanwhile, the ministry in a statement said that 21 ready-made garment manufacturing units are fully operational in Assam, Arunachal Pradesh, Manipur, Meghalaya, Nagaland, Mizoram and Tripura.
“Rs 690 crore has been utilised for the development of sericulture in the region,” it said adding three factories have become fully operational in the seven states in a “record time of 2 years”.
Each factory employs around 1,200 people, mainly women. The factories are owned by local entrepreneurs, and agencies like Clothing Manufacturers Association of India and Arvind Mills are placing orders with these units, it added.