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Indian leather industry seeks larger outlay in 12th Plan
Dec '11
Considering the rising number of challenges coming in way of achieving the export target of more than eight billion USD over next five years, the Indian leather industry has demanded a higher allocation under Indian Leather Development Programme (ILDP) during the 12th Five-Year Plan.

The industry has sought an outlay of Rs. 30 billion under ILDP during the 12th Plan, with a view to ensure reasonable and sustainable development in the years to come, the Council for Leather Exports (CLE) stated.

Various elements like Integrated Development of Leather Sector (IDLS), modernisation, a capital subvention for technology upgradation and capacity enhancement in all segments of the leather industry all formed a part of ILDP for 11th plan.

Under the 11th plan, a sum of Rs. 2.53 billion was allocated under the IDLS scheme of which Rs. 2.20 billion has already been used. However, owing to scarcity of funds it was decided to not to accept any applications under IDLS from August 16, 2011 onwards, CLE informed.

The Council has already urged the Planning Commission and the Department of Industrial Policy and Promotion to allocate additional one billion rupees to enable clearance of all applications received under IDLS scheme. The two authorities are deliberating on the Council's request.

The Council has also submitted several proposals for consideration under the 12th plan so as to ensure sustainable advancement and growth of the leather industry. Main amongst these proposals are financial backing for introducing, running and maintaining zero liquid discharge system, assistance with regards to schemes and events intended at sourcing raw inputs, setting up mega leather clusters in seven States and special assistance package for exports to the US.

In addition to this, the CLE has also set forth a proposal for establishing a Sector Skill Council (SSC) for the leather industry while drawing support from the National Skill Development Corporation. The main aim underlying SSC is to impart training in leather industry and to certify around two million people over next one decade. SSC could come up as an individual company under Section 25 of the Company's Act.

Fibre2fashion News Desk - India

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