The Odisha Government has amended provisions of the Odisha Apparel and Technical Textiles Policy-2022 to extend greater incentives to new industrial units in the sector through an enhanced employment cost subsidy.
According to the Handloom, Textile and Handicraft Department, new industrial units will now be eligible for a monthly incentive of Rs. 7,000 (US $ 79.36) per female worker and Rs. 6,000 (US $ 68.45) per male worker for a period of five years, starting from the commencement of commercial production. Earlier, the subsidy was fixed at Rs. 6,000 (US $ 68.45) for female workers and Rs. 5,000 (US $ 57.04) for male workers.
Officials said the revision was necessitated by the Labour and ESI Department’s recent increase in the minimum wage rates for unskilled, semi-skilled, skilled and highly skilled categories. With many units in the sector being labour-intensive, the enhanced support is aimed at helping them offset rising labour costs.
The Government noted that the higher incentive will not only ease financial pressures on apparel and textile manufacturers but also ensure Odisha continues to position itself as a competitive and attractive investment destination for the sector.
