Lok Sabha Question No. 3147 (UNSTARRED), answered on 2016-08-04
Subject: Development of Textile Sector
Ministry: TEXTILES
Asked by: RAM KUMAR SHARMA KUSHWAHA, ARJUNLAL MEENA

## LOK SABHA UNSTARRED QUESTION NO.3147 TO BE ANSWERED ON 04.08.2016

## DEVELOPMENT OF TEXTILE SECTOR

## 3147. SHRI RAM KUMAR SHARMA: SHRI ARJUN LAL MEENA:

Will the Minister of TEXTILES वस्त्र मंरी be pleased to state:

(a)  whether the Government has recently implemented a promotional scheme for development and expansion of textile industry in the country;

(b)  if  so,  the  total  funds  earmarked  for  the  purpose  under  the  said  scheme, sector-wise;

(c)  the  details  of  targets  fixed  for  quantum  of  cloth  production,  generation  of additional employment opportunities and earning of foreign exchange through this scheme; and

(d)  the  funds  spent  so  far  on  development  of  Textile  Export  Hub  under construction in Rajasthan?

## उत्तर

## ANSWER

## वस्त्र मंरी ( श्री अज )

## MINISTER OF STATE FOR TEXTILES (SHRI AJAY TAMTA)

(a) & (b): Yes,  Madam. The Government has recently launched a Rs. 6000 crore special package for employment generation and promotion of exports in Textile  and  Apparel  sector  in  the  country.    The  details  are  at Annexure-I. The funds allocated to different schemes inter-alia include  additional incentive of    Rs.  400-500  Crores  under    TUFS  and  reimbursement  of  3.67%  EPF contribution  to  employers;  Rs.5500  Crores  for  additional  duty  drawback  for garments.

(c): The textile package is expected to benefit all sectors i.e. spinning, weaving, knitting  processing  of  textile  value  chain  including  handloom  sector.  The package  has  envisaged  substantial  investment  in  apparel  sector  in  next  three years. With increase in investment, demand for raw materials like fabric, yarn, tec., will increase which will ultimately boost growth in entire textile value chain including handloom sector.

(d): A total of Rs. 127.2  crores has been released to six textile parks set up in Rajasthan under the 'Scheme for Integrated Textile Park' (SITP).

The Government has announced a special package of Rs 6,000 crores for boosting the employment  generation  and  export  potential  of  the  Textile  and  Apparel  Sector. Salient features of the package are:-

## 1. Labour Law Reforms

- a)   Government  to  bear  3.67%  of  employer's  Employee  Provident  Fund  (EPF) contribution  for  new  workmen  in  addition  to  existing  reimbursement  of 8.33% employer contribution under Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) for 3 years.
- b)  EPF will be made optional for employees earning less than Rs. 15,000 per month; thus, leaving more money in the hands of the workers.
- c)   Overtime  cap  will  be  raised  from  50  hours  per  quarter  to  100  hours  per  quarter leading to increased earnings of workers.
- d) Considering  the  seasonal  nature  of  the  industry,  fixed  term  employment  will  be introduced for the garment sector. A fixed term workman will be considered at par with  permanent  workman  in  terms  of  working  hours,  wages,  allowances  and  other statutory dues.

## 2. Additional incentives under ATUFS

- a)   The  subsidy  provided  to  garmenting  units,  under  Amended-TUFS,  is  being increased from 15% to 25%, providing a boost to employment generation.
- b)  The  package  breaks  new  ground  in  moving  from  input-based  to  outcome-based incentives;  a  unique  feature  of  the  scheme  will  be  to  disburse  subsidy  only  after expected jobs have been created.

## 3. Enhanced duty drawback coverage

- a)  In  a  first-of-its-kind  move,  a  new  scheme  will  be  introduced  to  refund  the  state levies which were not refunded so far.
- b)   This  move  will  greatly  boost  the  competitiveness  of  Indian  exports  in  foreign markets
- c)  Drawback at All Industries Rate will be given for domestic duty paid inputs even when fabrics are imported under Advance Authorization Scheme.

## 4. Enhancing scope of Section 80JJAA of Income Tax Act

a)   Looking  at  the  seasonal  nature  of  garment  industry,  the  provision  of  240  days under Section 80JJAA of Income Tax Act would be relaxed to 150 days for garment industry.

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