Centre steps in, lends shine to leather industry

The name of the scheme has been revised to Indian Footwear, Leather & Accessories Development Programme (IFLADP) as the scheme covers development of all sub-segments of the leather sector. The flagship scheme ILDP which was implemented by DIPP, during XII Five Year Plan period 201217 with an outlay of Rs 1,145.01 cr, ended on March 31, 2017.

However, the DIPP in consultation with stakeholders has submitted a note/proposal to the Union Cabinet for consideration and approval for implementing IFLADP for 3-year period 2017-2020. The Union Cabinet chaired by Prime Minister Narendra Modi approved the special package for employment generation in leather and footwear sector. The package involves implementation of Central Sector Scheme “Indian Footwear, Leather & Accessories Development Programme” with an approved expenditure of Rs 2,600 cr over the three financial years from 2017-18 to 2019-20. 

Mukhtarul Amin, Chairman, Council for Leather Exports (CLE), has said, “The industry is thankful to the Centre for coming out with a package for the employment generation in the leather and footwear industry with an outlay of Rs 2,600 cr, which is significantly higher than the outlay of Rs 1145.01 cr during the XII Plan 2012-2017. The package would generate more employment opportunities in the sector and it is estimated about 3 lakhs new jobs will be generated in the next 3 years.” 

He adds, “Establishment of greenfield Mega Leather Cluster at Kothapatnam, Andhra Pradesh has already been approved by the Centre. Another proposal to establish a Mega Footwear & Accessories Cluster at IMT Sohna Haryana is under advance stage. These are very important activities to boost the manufacturing capacities in the country and funding support under IFLADP at 50% of the project cost subject to ceilings based on land size, maximum of Rs 125 cr for land area more than 151 acres, is very much essential and would help creation of new greenfield clusters. These mega clusters will assist the entrepreneurs to set up worldclass units with modern infrastructure, latest technology, and adequate training and HRD inputs. Establishment of Mega Leather Clusters would help in creating additional employment opportunities, particularly for the weaker sections of society.”

PR Aqeel Ahmed, Vice Chairman-CLE, has remarked, “The proposals for upgradation and establishment of Common Effluent Treatment Plants (CETPs) in the tannery sector would be funded @ 70% of the project cost. This is a major relief to the tanning industry, as the funding support has increased from earlier level of 50% to 70% of the project cost. Amin remarked, “Another important scheme announced is for promotion of Indian Brands, for which funding support would be provided for creation of 10 Indian Brands in the international market during the next 3 years with maximum assistance of Rs 3 cr per brand per year.”