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Government of India
Ministry of Commerce & Industry
08-May-2013 14:07 IST
Potential for Growth of Leather Based Industries

 

 

The Leather Industry holds a prominent place in the Indian economy. This sector is known for its consistency in high export earnings and is among the top ten foreign exchange earners for the country. It is an employment intensive industry, providing jobs to about 2.5 million people, mostly from the weaker sections of the society. The Indian leather industry is bestowed with an affluence of raw materials as India is endowed with 21% of the world’s cattle & buffalo and 11% of the world’s goat & sheep population.

 

India accounts for a share of close to 3% of global leather import trade. With an annual turnover of over US $ 7.5 billion, the export of leather and leather products increased over the past decade and touched US $ 4.86 billion in 2011-12 with a cumulative annual growth rate of about 8.22% (5 years).  

 

Incentives and facilities provided to leather based industries under the Indian Leather Development Programme (ILDP) are not provided state wise. However, for the skill development of the leather sector work force, training is provided under the sub scheme of Human Resource Development. During the Eleventh Plan 50,250 persons were provided training out of which 41486 were placed in the industry. Rs. 44.88 crore was released for the same. 

 

 

The Government of India has also set up Campuses of Footwear Design & Development Institute (FDDI) in Noida, Fursatganj (Uttar Pradesh), Chennai (Tamil Nadu), Kolkata (West Bengal), Rohtak (Haryana), Chhindwara (Madhya Pradesh), Jodhpur (Rajasthan) towards training of manpower for the Leather industry.

 

Further, Department of Commerce is administering “Assistance to States for Infrastructure Development of Exports” (ASIDE) Scheme as per ASIDE guidelines with the objective to involve the states in the export effort by providing assistance to the State Governments for creating appropriate infrastructure for the development and growth of exports. The outlay of the scheme has two components i.e. 80% of the funds (State component) and 20% (central component).

 

(i)                The details of financial assistance provided under Central Component of ASIDE Scheme for Leather Sector are as below:

 

 

S.No.

Agency Name

Project Name

Year of sanction

Total Cost

Contribution ASIDE

Status

1.                    

Council for Leather Exports

Development of additional infrastructure in the Ambur Trade Centre

2009-2010

268.00

201.00

Completed

2.                    

-do-

Establishment of Testing Laboratory at Ranipet (Tamilnadu)

2010-2011

979.00

734.00

Under Implementation

3.                    

-do-

Infrastructure upgradation of Design Studio in Kolkata

2010-2011

320.34

288.30

Completed

4.                    

-do-

Establishment of Common Facility Centre in the leather cluster of Jalandhar

2011-2012

251.00

200.00

Under Implementation

5.                    

-do

Establishment of Trade Centre at Agra (Uttar Pradesh)

2012-2013

2,173.83

1,739.06

Under Implementation

6.                    

Footware Design &Development Institute

Skill upgradation of footwear artisans, Saharanpur

2002-2003

51.81

51.81

Completed

7.                    

-do-

Satellite Design Institute at Mumbai

2003-2004

69.45

69.45

Completed

8.                   

-do-

Setting up of a museum at FDDI Campus

2005-2006

64.00

64.00

Completed

9.                    

-do-

Procurement of Training Machines concerning Footwear

2006-2007

398.00

398.00

Completed

10.                

-do-

Setting up Auditorium and procurement of Machines

2006-2007

99.00

99.00

Completed

11.                 

-do-

Establishment of International Design Studio at FDDI, Fursatganj, Rae Bareli, UP

2010-2011

1,215.00

1,215.00

Completed

12.                 

-do-

Operator Training Centre at FDDI, Fursatganj, Rae Bareli

2011-2012

1,570.00

785.00

Under Implementation

13.                 

-do-

Upgradation of International Testing Centre at Noida and Chennai

2011-2012

497.00

437.00

Completed

(ii)       The details of State-wise financial assistance provided under State Component of          ASIDE Scheme for Leather Sector are as below:

 

S.

No.

State

Project Name

Year of sanction

Total Cost

Contribution ASIDE

Status

1.

Andhra Pradesh

CETP, Kunoor Leather Park, LIDCAP 2005-06

2005-2006

200.00

100.00

Completed

2

Karnataka

Infrastructure Development for footwear artisans in Athani, Belgaum

2005-2006

77.00

60.00

Completed

3

-do-

Establishment of Export Facility Centre for Leather Technology Assistance

2007-2008

679.00

483.00

Under Implementation

4

Tamil Nadu

CLE - Setting up off CETP for Leather Industries, Ranipet

2002-2003

176.00

75.00

Completed

5

-do-

CLE - Setting up of Common Facilities & Service Centre for Leather Industries in Madhavaram, Chennai

2004-2005

205.00

74.50

Completed

6

-do-

CLE - RO for Perundurai Leather CETP, Perundurai

2005-2006

1,053.66

300.00

Completed

7

Uttar Pradesh

Multi Skill Development Centre for Leather Ind at Kanpur-Unnao cluster.

2009-2010

924.31

701.93

Under Implementation

8

-do-

Testing lab for footware, saddlery and finished leather ind. at Kanpur-Unnao leather cluster.

2009-2010

976.23

826.23

Under Implementation

9

-do-

CFC for Meat/Leather Bye Products at Bareilly

2010-2011

437.74

318.49

Under Implementation

10

West Bengal

Construction of ILPA Training Institute for Leather Goods Manufacturing in Calcutta Leather Complex

2008-2009

569.00

562.00

Under Implementation

11

-do-

Export Quality Designer Leather Training Production Mart, Bolpur

2010-2011

750.00

528.00

Under Implementation

 

This information was given by the Minister of State in the Ministry of Commerce and Industry Dr. D. Purandeswari in a written reply to a question in Rajya Sabha today.

 

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DS/RK