Deputy Commissioner, Anurag Verma announced that the government has introduced a new Integrated Development of Leather Sector (IDLS) scheme for the modernization and technology upgradation of the leather industry.
According to this program, all existing leather and leather products units undertaking feasible and bankable projects on technology upgradation on or after the due date of notification, are eligible for assistance.
IDLS scheme is sponsored by Ministry of Commerce and Industry and has been introduced with retrospective effect for November.
The financial assistance will include investment funds to the extent of 30 percent of cost of plant and machinery for SSI and 20 percent of cost of plant and machinery for other units.
The maximum grant offered would be Rs50 lakh for technology upgradation, modernization or expansion.
The grant will also be available to those investing their own resources.
Verma informed that the implementing agency would be in the form of an administrative unit of the department called the Project Implementation Unit (PIU).
It will operate from Chennai (for tanneries) and from Noida (for processed goods).
SIDBI would be an additional agency to release assistance, coordinate, monitor and interface with financial institute, banks and government.
A prescribed IDLS-I form in triplicate with the concerned PIU supported by an affidavit, will be available to those who wish to apply for assistance.
The PIU shall complete the technical appraisal of the application duly received, and send it with recommendations to the applicant within 15 days, he added.
In case of projects involving no loan component, the industrial unit will be required to apply in a prescribed form directly to SIDBI.