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Press Information Bureau
Government of India
Ministry of Commerce & Industry
26-June-2019 15:44 IST
Implementation of IFLADP

The Central Government has approved implementation of Central Sector Scheme Indian Footwear, Leather & Accessories Development Programme(IFLADP) with an approved expenditure of Rs. 2600 crore over the three financial years from 2017-18 to 2019-20. Sub-schemes under IFLADPare as stated below:

  1. Human Resource Development (HRD) sub-scheme: HRD sub-scheme provides assistance for Placement Linked Skill Development training to unemployed persons @ Rs. 15,000 per person, for skill up-gradation training to employed workers @ Rs. 5,000 per employee and for training of trainers @ Rs. 2 lakh per person.
  2. Integrated Development of Leather Sector (IDLS) sub-scheme: IDLS sub-scheme incentivizes investment and manufacturing including job creation by providing backend investment grant/subsidy @ 30% of the cost of new Plant and Machinery to Micro, Small & Medium Enterprises (MSMEs) and @ 20% of the cost of Plant and Machinery to other units for modernization and technology upgradation in existing units and also for setting up of new units.
  3. Establishment of Institutional Facilities sub-scheme: The sub-scheme provides assistance to Footwear Design & Development Institute (FDDI) for upgradation of some of the existing campuses of FDDI into Centres of Excellence (CoEs) and establishing 3 new fully equipped skill centres alongside the upcoming Mega Leather Cluster.
  4. Mega Leather, Footwear and Accessories Cluster (MLFAC) sub-scheme: The MLFAC sub-scheme provides infrastructure support to the Leather, Footwear and Accessories Sector by establishment of Mega Leather, Footwear and Accessories Cluster. Graded assistance is provided upto 50% of the eligible project cost, excluding cost of land with maximum Government assistance being limited to Rs. 125 crore.
  5.  Leather Technology, Innovation and Environmental Issues sub-scheme: Under this sub-scheme, assistance is provided for upgradation/installation of Common Effluent Treatment Plants (CETPs) @ 70% of the project cost subject to a limit of Rs. 200 crore. The sub-scheme also provides for support to national level sectoral industry council/ association and support for preparation of vision document for leather footwear and accessories sector.
  6. Promotion of Indian Brands in Leather, Footwear and Accessories Sector sub-scheme: Under this sub-scheme, the eligible units approved for Brand Promotion are assisted. The Government assistance is limited to 50% of total project cost subject to a limit of Rs.3 crore for each brand, each year for 3 years.
  7. Additional Employment Incentive for Leather, Footwear and Accessories Sector sub-scheme: Under this scheme, employers' contribution of 3.67% to Employees' Provident Fund for all new employees in Leather, Footwear and Accessories sector, are provided for enrolling in EPFO for first 3 years of their employment.

To facilitate upgradation of infrastructure and job creation, assistance amounting to Rs. 65.24 crore has been provided for modernization/up-gradation of 171 leather and footwear units under Integrated Development of Leather Sector sub-scheme of IFLADP since 2017-18. 

Further, upgradation of seven FDDI campuses at Noida, Chennai, Hyderabad, Jodhpur, Patna, Kolkata and Rohtak into CoEs with total project cost of Rs. 129.62 crores has been approved under Establishment of Institutional Facilities sub-scheme of IFLADP.

To address environment sustainability, upgradation of 11 CETPs in Tamil Nadu with Government of India assistance of Rs. 354.53 crore has been approved under Leather Technology Innovation and Environment Issues’ sub-scheme of IFLADP.

Under Mega Leather Footwear and Accessories Cluster sub-scheme of IFLADP, In-principle approval has been accorded to the project Setting up of Mega Leather Footwear and Accessories Cluster at Calcutta Leather Complex, Bantala, Kolkata.

Under HRD sub-scheme of the IFLADP, following number of persons have been provided primary skill development training and placed during last three years:

 

Year

Training Target

Persons Trained

Persons Placed

2016-17

1,44,000

1,45,164

1,16,772

2017-18

1,44,000

94,232

71,125

2018-19*

1,70,000

89,904*

62,041

Total

4.34 Lakh

1,84,136

1,33,166

                        *Training ongoing.

Leather sector has been identified as one of the focus sectors under Make in India programme of the Government of India. The implementation of IFLADP scheme would lead to development of infrastructure for the leather sector, enhance production, address environment concerns specific to the leather sector, facilitate additional investments and generate employment.

This information was given by the Minister of Commerce and Industry, PiyushGoyal, in a written reply in the Lok Sabha today.

***

MM