3 sub-schemes for development of leather industry

SME Times News Bureau | 09 Mar, 2010
The government is implementing three sub-schemes for the development of leather industry, informed Jyotiraditya M. Scindia, Minister of State for Commerce and Industry, in a written reply in the Lok Sabha on Monday.

The minister informed that the Central Government is implementing three sub-schemes under Indian Leather Development Programme (ILDP) during the 11th Five Year Plan to meet the requirement of manpower in the leather industry.

The details are as under: -

Sl No.	Name of sub-scheme	Allocation for 11^th Five Year Plan (Rs. in crore)	Source of funding	Places where centre is established
1	Footwear Design and Development Institute (FDDI), Fursatganj	7.17	Grants-in-Aid from Central Government under Indian Leather Development Programme (ILDP)	Fursatganj in Uttar Pradesh.
2	Up gradation and Establishment of Institutional facilities	300.07	Grants-in-Aid from Central Government under Indian Leather Development Programme (ILDP)	Three branches of FDDI are being established at Chennai in Tamil Nadu, Kolkata in West Bengal and Rohtak in Haryana. In addition, the existing branch of FDDI at Noida would be up-graded.
3	Establishment of Training Centre in Madhya Pradesh	24.88	Grants-in-Aid from Central Government under Indian Leather Development Programme (ILDP)	Chhindwara in Madhya Pradesh.

"The government is implementing a sub-scheme, "Integrated Development of Leather Sector" (IDLS) with an outlay of Rs. 253.43 crore under ILDP during the 11th Five Year Plan period," release said.

Under the sub-scheme, assistance are provided to leather units in the form of investment grant at a rate of 30% for Small Scale Industries (SSI) and 20% for non-SSI upto Rs. 50 lakh. Assistance above Rs 50 lakhs is provided at a rate of 20% within ceiling of Rs. 2 crore.

Testing facilities for the Leather Industry exist at Central Leather Research Institute, Chennai and its Regional Centres at Jallandhar, Kolkata and Kanpur; Footwear Design and Development Institute at Noida and Fursatganj; and Testing Centre in the Footwear Component Park at Chennai.

For addressing the environmental issues of the Leather Industry, the Central Government is implementing a sub-scheme "Environment Initiatives" with an outlay of Rs. 200 crore under ILDP during the 11th Five Year Plan period.