Centre considering PLI scheme for leather, footwear sector: DPIIT

New Delhi, May 17 (KNN) The central government is considering to extend various initiatives to the leather and footwear sector, Additional Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Rajiv Singh Thakur said on Tuesday.

When asked if the government is looking at extending financial incentives under the PLI (production linked incentive) scheme to the sector, he said "all these things are being considered, but as of now no decision has been taken.”

Thakur pointed out that the department is trying to create schemes through which availability of raw material can be enhanced to the industry. “They are also looking at ways to monitor the imports and there are suggestions for imposing minimum import price (MIP),” he informed.

The industry's estimated value is around Rs 82,000 crore while its exports are around Rs 42,000 crore at present. India's exports account for only 2.65 per cent of the global export in the sector. The sector provides employment to close to 4.42 million people.

Talking about the Indian Footwear and Leather Development Programme (IFLDP), he said out of Rs 1,700 crore envisaged for this scheme, so far Rs 350 crore has been released under three sub-schemes of IFLDP.

Those three are Integrated Development of Leather Sector (IDLS), Sustainable Technology and Environmental Promotion (STEP), and Establishment of Institutional Facilities (EIF).

There are no disbursals so far under the other three sub-schemes of the programme-Mega Leather Footwear and Accessories Cluster Development (MLFACD), Brand Promotion, and Development of Design Studios.

The government on January 19, 2022 has approved continuation of the IFLDP with an allocation of Rs 1,700 crore till March 31, 2026.  In the last nine years, a total of Rs 2,198 crore were released under IFLDP.  (KNN Bureau)