The government is likely to extend an incentive scheme for the leather and footwear industry, IFLADP, till 2025-26, with an outlay of ₹1,700 crore to further boost manufacturing, exports and job creation, an official said.
The Ministry of Commerce and Industry has submitted a proposal for the implementation of the Indian Footwear Leather and Accessories Development Program (IFLADP). ₹The official said Rs 1,700 crore would be spent during 2021-22 to 2025-26.
The official said that the Union Cabinet is likely to approve it soon.
The program has six components – Sustainable Technology and Environment Promotion (Proposed Outlay) ₹500 crore); Integrated Development of Leather Sector (Proposed Outlay) ₹500 crore); Establishment of Institutional Facilities ( ₹200 crores); Mega Leather Footwear & Accessories Cluster Development ( ₹300 million); Brand Promotion of Indian Brands in Leather and Footwear Sector ( ₹100 crores); and development of the design studio ( ₹100 crores).
The official said the Expenditure Finance Committee under the finance ministry has already approved the commerce ministry’s proposal.
Under the ‘Sustainable Technology and Environmental Promotion’ component, assistance may be provided for setting up a Common Effluent Treatment Plant; and support for modernization/capacity expansion/technology up-gradation under the ‘Integrated Development of Leather Sector’ component.
Similarly, under the ‘Establishment of Institutional Facilities’ component, assistance may be provided for setting up of new infrastructure and upgradation of requisite infrastructure of existing campuses of Footwear Design and Development Institute (FDDI).
Under the ‘Mega Leather Footwear & Accessories Cluster Development’ sub-scheme, graded support for land development, social infrastructure, production facilities and R&D (R&D) support is proposed.
For brand promotion, assistance may be provided to promote at least 10 Indian brands in the international market.
In addition, under the ‘Development of Design Studio’ component, support may be given to develop 10 studios.
“Studios will spur design innovation, foster market and export relations, facilitate buyer-seller meetings, display designs to international buyers and serve as interfaces for trade fairs.
“These studios will provide services like technical support and quality control,” the official said.
Earlier, IFLADP was announced with an expenditure of ₹2,600 crore for three financial years – 2017-18 to 2019-20. It also aimed to increase production and job creation, facilitating additional investment and infrastructure development.
The Council for Leather Exports (CLE) has also suggested to the ministry for further expansion of the scheme as it helps in upgrading infrastructure, boosting domestic manufacturing and increasing the country’s exports.
CLE chairman Sanjay Leekha said the scheme is “hugely” beneficial to the sector.
“This helped the sector register a healthy growth rate. If the government increases it, the leather industry will get a significant boost,” he said.
Leekha said components such as brand building and setting up of a design studio are crucial for the growth of the region and increasing competitiveness in both domestic and international markets.
He said that under the Integrated Development Component of the leather sector, the norms should be simplified so that the industry can take advantage of it.
This story has been published without modification in text from a wire agency feed. Only the title has been changed.
Don’t miss a story! Stay connected and informed with Mint.
download
Our App Now!!
.