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Union Government acts to set up mega leather cluster in TN
18
Nov '11
The Union Government has started working on its Budget 2010-11 proposal of setting up mega leather clusters in seven States including Tamil Nadu, so as to help the leather industry to boost its export volumes over the next five years.

The Central Government will fund the major share for the establishment of the mega cluster in Tamil Nadu, which would entail an investment of around Rs. 1.2 to 2 billion. This funding assistance would be in the form of grants and the Union Ministry of Commerce is assessing several proposals for the purpose, a top official of the Council for Leather Exports said.

IL&FS, one of India's leading infrastructure development and finance companies, has been assigned the job of preparing a detailed project report (DPR) and assessing the labour availability at the site proposed by the Union Government for setting up the cluster. However, things are still in their initial stages, the official said.

As prior efforts of the Centre to establish such specific industrial zones like SEZs or industrial parks for the leather industry in the State did not materialize, the site for the project this time is expected to be finalized only after the task of mapping the labour availability and ensuring proper connectivity to the port conclude, he added.

Fibre2fashion News Desk - India


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