Govt Mulls Extending 1700 Crore IFLADP Scheme For Leather, Footwear Industry Till 2025-26
BW CFO World Online Bureau
Government is looking to introduce an incentive scheme IFLADP for leather, footwear industry till 2025-26 with an outlay of Rs 1,700 crore.
The government is going to extend an incentive scheme for leather and footwear industries, India Footwear Leather and Accessories Development Program (IFLADP), till 2025-26 with an investment outlay of Rs 1,700 crore to boost the manufacturing, exports and job creation.
The program has six components- Sustainable Technology and Environmental Promotion with an outlay of Rs 500 crore; Integrated Development of Leather Sector with an outlay of Rs 500 crore; Establishment of Institutional Facilities with an outlay of Rs 200 crore; Mega Leather Footwear and Accessories Cluster Development with an outlay of Rs 300 crore; Brand Promotion of Indian Brands in Leather and Footwear Sector with an outlay of Rs 100 crore and Development of Design Studios with an investment outlay of Rs 100 crore. The expenditure finance committee has already approved the Commerce Ministry’s proposal.
Under the Sustainable Technology and Environmental protection, assistance will be provided to set up a common effluent treatment plan; and support could be extended for modernization/ capacity expansion/ technology upgradation under the Integrated Development of Leather sector. Under the Establishment of Institutional Facilities component, support will be provided for setting up new infra and upgradation of existing campuses of Footwear Design and Development Institute (FDDI). Under the Mega Leather Footwear and Accessories Cluster Development, graded assistance is provided for land development, social infrastructure, production facilities, and Research and Development (R&D) support. For brand promotion, support could be provided to promote at least 10 Indian brands in the international market.
Further, under the component of ‘Development of Design Studios’, assistance could be given for developing 10 studios.
The studios will promote design innovation, promote market and export linkages, facilitate buyer-seller meets, display designs to international buyers and work as interfaces for the trade fairs.
Earlier, the IFLADP was announced with an expenditure of Rs 2,600 crore for three financial years — 2017-18 to 2019-20. It was also aimed at the development of infrastructure and facilitate additional investments, increasing production and employment generation.
The Council for Leather Exports (CLE) has also suggested the ministry for further extension of the scheme as it helps in upgrading infrastructure, boosting domestic manufacturing and increasing the country’s exports. CLE Chairman Sanjay Leekha said the scheme was “extremely” beneficial for the sector. “It helped the sector in registering healthy growth rates. If the government extends it, the leather industry would get a significant filip,” he said. Components like brand building and setting up of design studios are key for the sector’s growth and enhancing competitiveness in both domestic and international markets, Leekha added.
(PTI)
