Leather sector SSIs granted Rs 38crs under ILDS scheme

07 Feb '07

2 min read

Under the Integrated Development of Leather Sector (IDLS) scheme, Government of India has allocated Rs 290 crore worth grant for modernizing the leather sector, with Rs 150 crores being allotted for tannery modernization and Rs140 crores for product industries.

This grant will be 30 percent for SSI units and 20 percent for Non SSI units with a ceiling of Rs 50 lakhs for each unit. Multi product line companies will be entitled to a maximum of Rs 50 lakhs for each product line.

Applications for grants need to be forwarded to two Project Implementation Units (PIU) i.e. the Central Leather Research Institute (CLRI) Chennai from tanning sector and Footwear Design and Development Institute (FDDI), Noida for product industries. Disbursal of funds will be undertaken by the Small Industries Development Bank of India (SIDBI).

The IDLS Scheme came into effect from Nov 3, 2005. Investments made through self finance or loan after this date in specified areas like machines, environmental safeguards, R&D and testing facilities, networking, e- governance, worker safety etc will qualify for assistance.

The applicant unit has to be in existence for a minimum period of three years and have cash profits for two years to be eligible for grant.

The PIU-CLRI received 156 applications till Feb 7, 2007. Almost 75 percent of the applications received are from SSI sector. In terms of funding for modernization, 60 percent of units have opted for bank/FI loans.

CLRI - the world's largest leather research institute, was founded on 24 April, 1948. It took initiative to link technology system with both; academy and industry to develop a strong network within the country.

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