The leather industry’s development plans are taking a new turn with the Union cabinet approving the Indian Leather Development Programme (ILDP) for the Eleventh Plan period, envisaging an outlay of Rs 9,12.67 crore, more than double the outlay of Rs 400 crore allocated in the 10th Plan. The chairman of the Council For Leather Exports (CLE), Mukhtarul Amin, told FE that this would generate at least Rs 2,000 crore new investments in the leather sector in the coming years.
A `leather park scheme’ with an outlay of Rs 300 crore was also under way. A formal announcement of the scheme, under which, grant would be provided for the development of a leather park, was expected shortly, he said. Amin said an advantage of ILDP was that, “Even the new units are eligible for the plan assistance. This will attract a good number of entrepreneurs to the leather sector. Along with the expansion of the existing units, fresh capacities will be created. This will increase both exports and employment substantially.”
The ILDP consists of various schemes like Infrastructure Development of Leather Sector, leather complex at Nellore, establishment of subcentres of the Footwear Design and Development Institute, the footwear complex at Chennai, saddlery development activities, support for rural artisans, human resource development activities, establishment of institutional facilities, creation or improvement of environmental protection systems, foreign and domestic investment promotion and consultancy services.
It would also facilitate technological upgradation of the industry and capacity building and development of human resources. It is being extended to the 11th Plan period (2007-2012) as well.
Under the scheme, financial assistance is provided by the government to the tanners and manufacturers of leather products like footwear, garments, leather goods like bags, wallets, gloves etc for technological upgradation and modernisation of production units.
