Empowering MSMEs with News & Insights

Government seeks proposals to set up leather clusters

Updated: Feb 07, 2014 03:55:10pm
image
Chandigarh, Feb 7 (KNN) The Commerce Ministry today invited proposals for setting up of Mega Leather Cluster in the states which have large concentration of leather units.
The project components include common facilities in the cluster, minimum land area of 25 acres (without tanneries) and 40 acres (with tanneries).

The cluster would include basic infrastructure of building road networks, power supply, water supply, sewage besides the social infrastructure such as health centres and primary schools.

Central government’s assistance can be up to 50 per cent of the project cost with the limit between Rs 50 crore and Rs 125 crore depending on the size of the cluster. However, promoter will have to bring in the land for the project at his own cost.

The role of the state government includes providing all requisite clearances such as environment and ensuring a conducive labour environment.

The Department of Industrial Policy and Promotion (DIPP) under the Ministry of Commerce and lndustry will do regular monitoring on the project implementation.

The major objective of developing Mega Leather Clusters is to create world-class infrastructure and to integrate the production chain in a manner that caters to the business needs of the leather industry so as to cater to the domestic market and exports.

In brief, these mega clusters will assist the entrepreneurs to set up world-class units with modern infrastructure, latest technology, and adequate training and Human Resource Development (HRD) inputs. The development of Mega Leather Clusters would help in creating additional employment opportunities, particularly for the weaker sections of society. 

The Mega Leather Clusters may host production units of all segments namely footwear, footwear components, leather goods (including gloves), leather garments and saddlery and harness items.

The Leather Industry holds a prominent place in the Indian economy. This sector is known for its consistency in high export earnings and is among the top ten foreign exchange earners for the country.

It is an employment intensive industry, providing jobs to about 2.5 million people, mostly from the weaker sections of the society, with women holding more than about 30 per cent share. The Indian leather industry is bestowed with an affluence of raw materials as India is endowed with 21 per cent of the world’s cattle and buffalo and 11 per cent of the world’s goat and sheep population. (KNN/SD)

COMMENTS

    Be first to give your comments.

LEAVE A REPLY

Required fields are marked *