The Hindu Business Line : Commerce Ministry draws up revised plan for leather units

THE Union Commerce and Industry Ministry will place a revised proposal for the integrated programme for development of the leather industry early next month. The programme is due for implementation in the ongoing Tenth Plan period.

The Department of Industrial Planning and Promotion (DIPP) under the Commerce and Industry Ministry has already prepared a Rs 400-crore scheme, inclusive of Rs 150 crore fund, for the modernisation of tanneries. The scheme, however, has received objections from the Finance Ministry.

"The Finance Ministry has raised a few objections on the scheme prepared by DIPP and has requisitioned clarifications. The issue was discussed at a meeting in the Commerce and Industry Ministry on October 20. The Department will finalise the revised scheme as per the suggestions of the Finance Ministry at its next meeting scheduled for early November," Mr S.S. Kumar, Chairman of Council for Leather Exports (CLE), told Business Line.

Meanwhile, as per the Tenth Plan directive to share responsibilities, the Indian Leather Products Association (ILPA) has finalised setting up the country's first training centre for creation of skilled manpower for the leather industry.

The `multi-level training centre' will be set up at the proposed Leather Goods Park within the Calcutta Leather Complex and in collaboration with PISIE, an Italian organisation specialising in technical support and training in leather and footwear industry.

The collaboration was finalised during a recent visit to Italy by representatives of the leather industry and the officials of West Bengal Government.

According to Mr Kumar, who is also an executive body member of ILPA, the association has reached an understanding with the Calcutta Leather Complex authorities, namely, the West Bengal Government and the BOT partner, ML Dalmiya & Co (MLDC), to create a park inclusive of the training centre, a design studio and land for setting up manufacturing facilities for 100 odd members of ILPA.

While Mr Kumar said that the total requirement of land would be finalised at a meeting of ILPA on November 3, sources said that the association would pitch for more than 50 acres to set up the park. MLDC has already agreed to provide land at a "concessional" rate of Rs 1,450 per square feet.