The Hindu Business Line : Leather park likely to be completed by 2008-09

The leather goods park project of Indian Leather Products Association (ILPA), coming up on approximately 60 acres of land inside the Calcutta Leather Complex (CLC) at Bantala in east Kolkata, is expected to be completed by 2008-09.

The facility will put Kolkata on the international leather goods buyers' map, as an important port of call.

Leather goods are said to be the strength of the eastern region, contributing to nearly 60 per cent of the country's total leather exports.

Some 90 member-units of various sizes have already taken possession of their respective plots in the Leather Park and large investments are expected to flow in by 2008-09.

The various facilities within the CLC complex — like roads, lighting, sewerage etc. have been completed.

The ILPA is already talking to the West Bengal Government for allocation of more land to build good infrastructure for micro home leather goods units at affordable cost. The plan is to provide a healthy and safe environment for these units.

Detailing the various activities of the ILPA, at the association's 19th Annual General Meeting here on Thursday, Mr Tapan Nandi, President, said ILPA has already acquired another 2,025 sq mt near CLC to build a tailor-made service facility centre for the leather industry near the city, which will provide services like banking, courier, markets for inputs etc.

Pointing out that leather exports during the current fiscal were on target, Mr Nandi said as per Director General of Commercial Intelligence and Statistics figures, during 2005-06, exports of $2.69 billion were achieved against the $2.49 billion, registering a growth of nearly 8 per cent in dollar terms.

In rupee terms, it was Rs 11,929 crore (Rs 11,212 crore), showing an increase of over 6 per cent.

Surge in demand

Speaking at the inaugural session of the ILPA General Meeting here on Thursday, Mr Guenter Wehrmann, Consul General of the Federal Republic of Germany said a massive surge in domestic consumer demand for various products, including leather goods from India was expected by end December 2006, as the Federal Government was expected to raise VAT rates from the prevailing 16 per cent to 19 per cent by early next year.

He urged the Indian exporters to take advantage of this situation. He, however, confirmed that the rates were still lower than that prevailing in some of the other EU states.

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