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Karnataka Govt vows to revive Leather Corporation

20
May '10
The Karnataka Government has determined to revitalize the unprofitable Karnataka Leather Industries Development Corporation (LIDKAR), by spending Rs 91.5 million towards its expansion and restructuring, during 2010-11. The intention behind setting up this corporation was to support the leather sector and help the artisans.

Venkataramanappa, Minister for Small Scale Industries and Sericulture, recently said that, the amount allocated for revival will be spent towards technology up-gradation so as to enable production of superior quality products like leather bags, purses, belts, shoes, gloves and also for promoting these products throughout the state. He also added that, the Ministry during 2009-10, shelled out Rs 35 million for varied developmental activities.

The Corporation that was set up in 1976 has been running in losses since 2000-01, which was due to various factors like inferior quality goods and inadequate marketing.

Officials from the Ministry have been directed to develop an in-depth project report aimed at Corporation's revitalization. Also, the Social Welfare Department has decided to allocate Rs 20 million for the purpose as around 40,000 poor artisans are dependent on the Corporation for their living.

The Minister, who assessed the Corporations' growth, stated that, with an eye to boost the sales of leather products new promotional outlets would also be set up at Mysore, Dharwad, Bangalore and Bagalkote.

He concluded by saying that, all together Rs 2.5 million would be allocated for refurbishment of 24 outlets in the state. More over, during the last few years, only four outlets set up in Bangalore, Mysore, Hubli and Hospet have been generating profits.

Fibre2Fashion News Desk - India


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