The Department of Industrial Policy & Promotion (DIPP) is implementing a sub-scheme ‘Mega Leather Cluster (MLC)’ under Indian Leather Development Programme which aims at setting up of mega leather clusters in the country during 12th Plan. The major objective of developing Mega Leather Clusters is to create world-class infrastructure and to integrate the production chain in a manner that caters to the business needs of the leather industry so as to cater to the domestic market and exports. The minimum land area required for Mega Leather Cluster is 25 acres to be set up without tanneries and 40 acres with tanneries. Graded GOI assistance is provided upto 50% of the project cost excluding cost of land with maximum GOI assistance being limited to ₹ 125 crore which is detailed as below: 

1.      MLC of 25-60 acres land (to be set up without tanneries) and 40-60 acres land (to be set up with tanneries)- GoI assistance limited to ₹ 50 crore ; 

2.      MLC of 61-100 acres land- GoI assistance limited to ₹ 70 crore; 

3.      MLC of 101-150 acres land- GoI assistance limited to ₹ 105 crore; 

4.      MLC of more than 151 acres land- GoI assistance limited to ₹ 125 crore. 

The sub-scheme is not location specific. It is demand driven and depends upon the project proposal received in this regard.  

The outlay under the sub-scheme for the 11^th  Plan and 12^th Plan period was ₹ 300 crore and is ₹ 100 crore respectively. While two Leather Parks were proposed during the 11th Plan at Chennai (Tamilnadu) and at Nellore (Andhra Pradesh), neither could be established.  It is proposed to provide support for establishment of atleast two MLCs all over India during 12th Plan period. The sub-scheme is demand driven and not location specific.  

This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Lok Sabha today.

Mega Leather Cluster scheme: graded government assistance for eligible cluster projects, governed by land-size thresholds and demand-driven approval. The Department of Industrial Policy & Promotion implements the Mega Leather Cluster sub-scheme to create integrated leather cluster infrastructure, requiring minimum land thresholds (25 acres without tanneries; 40 acres with tanneries) and providing graded GOI assistance up to 50% of project cost excluding land, with caps tied to land-size bands. The scheme is demand driven, non location specific, and budgetary outlays were allocated across Plan periods with planned support for at least two clusters during the 12th Plan.