The Made ups sector is poised to create additional employment on account of the Govt support extended to this sector, said Shri Ujwal Lahoti, Chairman of The Cotton Textiles Export Promotion Council ( TEXPROCIL). The Rebate of State Levies (ROSL) scheme was announced in the month of December 2016 for the made ups sector for a period of three years. Subsequently, the ROSL rates were announced and were made effective from March 23, 2017. The objective of the scheme is to provide a rebate of state levies consisting of State VAT/CST on inputs including packaging, fuel, duty on electricity generation and duties and charges on purchase of grid power, as accumulated through the stages of production from yarn to finished made ups.
Many leading Companies manufacturing “made ups” are reportedly drawing up plans for investments in this sector after the scheme has been announced. The ROSL scheme will certainly lead to an increase in exports of made ups articles which in turn will create more employment, according to Lahoti. The Chairman said that any increase in the exports of made ups will create additional employment in the entire value chain such as spinning and weaving besides the made ups sector especially in the rural areas and for women.
Earlier, a package including the ROSL scheme was announced for the garments sector in July 2016. The Chairman, TEXPROCIL pointed out that according to data released by the Ministry of Textiles, after the package was announced, between July 2016 and March 2017, garment exports increased to USD 13.47 as against USD 12.37 billion during the same period in the preceding year.
Shri Lahoti expressed his confidence that exports of made ups will also grow as a result of the ROSL scheme as in the case of “garments”. Since both “garments” and “made ups” fall under the category of “cut & sew” products and the requirement for labour is more or less similar in both the sectors, increase in the exports of made ups will certainly lead to the creation of more employment and the effect can be seen in the next three to six months, according to Shri Ujwal Lahoti.
The Chairman, TEXPROCIL urged the Govt to continue with the ROSL scheme for three years as committed even under the GST regime as there are still many State taxes/levies which are not subsumed under the GST.