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Govt okays special package for leather and footwear sector

Updated: Apr 05, 2018 08:54:59am
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Govt okays special package for leather and footwear sector

New Delhi, Apr 5 (KNN) With a view to create employment in Leather and footwear sector, a special package has been approved by the government for employment generation in the concerned sector which involves implementation of Central Sector Scheme ‘Indian Footwear, Leather & Accessories Development Program (IFLADP).

The expenditure approved under this scheme is Rs 26,00 crores for three financial year from 2017-18 to 2019-20.

The IFLADP comprises of seven sub-schemes.

Human Resource Development (HRD) sub-scheme has been proposed to provide financial assistance of Rs 15,000 per unemployed persons for Placement Linked Skill Development training, Rs 5000 per employee for skill up-gradation training to employed workers and Rs 2 lacs per person for training of trainers.

Integrated Development of Leather Sector (IDLS) sub-scheme incentivizes investment and manufacturing including job creation by providing backend investment grant/subsidy at 30% of the cost of new Plant and Machinery to Micro, Small & Medium Enterprises (MSMEs) and at 20% of the cost of Plant and Machinery to other units for modernization /technology up-gradation in existing units and also for setting up of new units.

Establishment of Institutional Facilities sub-scheme provides assistance to Footwear Design & Development Institute (FDDI) for up-gradation of some of the existing campuses of FDDI into "Centers of Excellence" and establishing 3 new fully equipped skill centers alongside the upcoming Mega Leather Cluster.

Mega Leather, Footwear and Accessories Cluster (MLFAC) sub-scheme has been proposed to facilitate infrastructure support to the Leather, Footwear and Accessories Sector by establishment of Mega Leather, Footwear and Accessories Cluster.

Further, Graded assistance is provided up to 50% of the eligible project cost, excluding cost of land with Government assistance being limited to Rs. 125 crores.

Leather Technology, Innovation and Environmental sub-scheme, has been proposed with an objective of providing assistance for up-gradation/installation of Common Effluent Treatment Plants (CETPs) at  70% of the project cost.

Further, provides support to national level sectoral industry council/ association and support for preparation of vision document for Leather Footwear and Accessories Sector.

Promotion of Indian Brands in Leather, Footwear and Accessories sub-scheme, provides assistance to eligible units approved for Brand Promotion and the Government assistance for this is limited to 50% of total project cost subject to a limit of Rs.3 crores for each brand, each year for 3 years.

Additional Employment Incentive for Leather, Footwear and Accessories Sector scheme, shall provide additional 3.67% of employers contribution to Employees' Provident Fund for all new employees in Leather, Footwear and Accessories sector are provided for enrolling in EPFO for first 3 years of their employment. (KNN/YV)

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