TEA is in favour of extension of the MGNREGS

The Tirupur Exporters' Association (TEA) is in favour of extension of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) to the garment sector.   At a Pre-Budget consultations meeting with Finance Minister Arun Jaitley in New Delhi, TEA president A Sakthivel submitted a memorandum containing the issues to be addressed by the Finance Ministry and other ministries, according to a TEA statement.   Besides seeking extension of MGNREGS to the garment sector, the other main issues highlighted in the memorandum were reduction of customs duty for import of synthetic/ blended/ specialty fabric of cotton, and extension of Rupee Export Credit at 3 percent interest rate subvention.   The memorandum said that employees in Tamil Nadu are paid Rs. 138 per day under the MGNREGS, which guarantees minimum 100 days of employment a year. If the scheme is extended to the garment sector, exporters would give guarantee to the textile ministry that they would employ at least 50 workers, of which 50 percent would be women, and provide them employment for 250 days.   Such a step would not only result in providing more employment, but would also help in doubling garment exports over the next three years period, the memorandum said.   The memorandum also sought amendment in labour laws related with overtime working.