The Hindu Business Line : Cabinet approves integrated leather development programme

Plans ahead
Three new design institutes are planned in Chennai, Rohtak and Kolkata
Rs 60-cr HRD Mission to target training of non-traditional potential work force in rural areas
AP Govt setting up leather tanning complex in Nellore during 11th Plan

Our Bureau

New Delhi, Aug. 22 In view of the importance of the leather sector for the economy and social equity, the Union Cabinet approved an ambitious plan with an outlay of Rs 912.67 crore.

‘Indian Leather Development Programme’ lays accent on an integrated development of the industry by dovetailing different components such as infrastructure development, capacity-building, human resource development, investment promotion and environmental issues for implementation during the Eleventh Plan period (2007-12).

In order to meet the growing demand for leather technologists, workers and designers, three new institutes on the pattern of FDDI (Fashion Design and Development Institute), Noida, would be set up in Chennai, Rohtak and Kolkata with an outlay of Rs 96.69 crore each, an official statement issued here said.

FDDI at Rohtak would be developed as a world class design institute. The institutes would be operational from the academic year 2011-12.

The Human Resource Development Mission, with an outlay of Rs 60 crore, would target training of non-traditional potential work force in rural areas.

Training workers

This project would train and prepare individuals in the rural areas in cutting, skiving and stitching and would place at least 75 per cent of those trained in the industry. It also includes skill upgradation programmes for workers of the organised and un-organised sector.

The scheme titled ‘Support to Artisan’, with an outlay of Rs 40 crore, would provide design support, corpus of revolving funds for obtaining bulk raw material, grant-based livelihood support, marketing support/linkages and also bank linkages with an objective to ensure better and higher returns to the artisans.

Under ‘Saddlery Development’, Rs 10 crore has been allocated for providing R&D support to the saddlery and harness segments.

In order to enable industries to cope with the stringent pollution-control norms, an allocation of Rs 200 crore has been made in the Eleventh Plan to meet environmental concerns.

Such projects for addressing environmental concerns would be funded with 50 per cent grants from Central Government, 15 per cent from State Government and balance 35 per cent from the industry. The industry would bear the entire operation and maintenance costs.

Tanning complex

World-class infrastructure is the key to a globally competitive leather industry and a Leather Tanning Complex would be set up by the State Government at Nellore in Andhra Pradesh during the Eleventh Plan with support of Rs 29 crore from the Centre.

With an aim to enhance capacity and increase investment in the sector, Integrated Development of Leather Sector — a scheme for providing capital subsidy for modernisation of leather units — has been modified, allowing assistance to new units and raising the limit of subsidy to Rs 2 crore from the existing Rs 50 lakh per unit. A provision of Rs 253.43 crore is provided in the Eleventh Plan for the purpose.

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