The Hindu Business Line : Leather park Kolkata expected to boost exports

THE proposed Leather Goods Park, expected to come up inside the new Calcutta Leather Complex in an area of 50 acres, along with a design facility, is expected to give a big boost to export of leather goods from the eastern region.

Talking to presspersons here after the inauguration of the 11th International Leather Goods Fair 2005, Dr Sabyasachi Sen, Principal Secretary, Commerce and Industry, West Bengal, said work on the Leather Goods Park project, being executed by the Indian Leather Products Association (ILPA), was expected to begin by March 2006 and is likely to be completed by 2008.

A special purpose vehicle will be formed soon to take the project forward.

The fair, which will project the country's capabilities in the leather goods sector, has been organised by the India Trade Promotion Organisation, Government of India, in collaboration with the Council for Leather Exports, ILPA, the design studio Freya, CLRI, the West Bengal Government and the Bengal National Chamber of Commerce and Industry.

According to Mr Tapan Nandi, President of ILPA, though the leather goods sector was not a high-tech one, basic upgradation is still required in the design and product development areas, apart from adopting better production techniques and using the best available embellishments and trimmings.

In this context, he said, the setting up of a well-equipped design complex within the Leather Goods Park assumed great importance for the growth of the leather goods sector in the eastern region.

The design centre will have a common facility centre with modern machinery and equipment and facilitate production.

Mr Nandi said a display-cum-warehousing facility would also be created within the common facility centre.

Earlier, addressing a press conference, Mr Rafeeq Ahmed, National President of Council for Leather Exports (CLE), said the eastern region's strengths in leather goods manufacturing would be strengthened by both the new Calcutta Leather Complex and the proposed leather Goods Park, particularly in the context of the country's export target of over $5.2 billion by 2010.

Describing the 2004-05 export achievement of $2.3 billion as highly satisfactory, Mr Ahmed said, to achieve the set target, a year-on-year export growth of 12-12.5 per cent would be required.

Expecting more joint ventures and FDI in the leather sector, Mr Ahmed said CLE was appointing an India Desk in Italy to bring in more investments into India in the leather sector.

He said the Government of India's decision to set aside Rs 290 crore for leather industry modernisation, with a 20-per cent capital subsidy for non-SSI units and 30 per cent for SSI units, should give a tremendous boost to design and development in leather units around the country.

The Plan panel is expected to make the formal announcement on the modernisation fund within the next 10 days, said Mr Ahmed.

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