The Ministry of Commerce & Industry has given approval to establishment of Mega Leather Cluster at Kota Mandal, Nellore district, Andhra Pradesh. Minister of Commerce & Industry Smt Nirmala Sitharaman in a letter to the Chief Minister, Andhra Pradesh mentioned that "It gives me immense pleasure to inform you that proposal for establishment of Mega Leather Cluster at Kota Mandal, Nellore district, Andhra Pradesh has been approved with a central government assistance of ₹ 125 Crores". The project sanctioned under Indian Leather Development program would create state of the art infrastructure for labour intensive units and is expected to generate employment for 20,000 people and leverage an investment of at least ₹ 500 Crores in the first phase itself. The Minister requested the Chief Minister that due process related to award of contract etc be completed so that the central government could release the funds to start the project as soon as possible.

Central approval for mega leather cluster secures government assistance, requiring completion of procurement procedures before fund release. Approval for a Mega Leather Cluster at Kota Mandal, Nellore district has been granted under the Indian Leather Development Programme with central government assistance of Rs. 125 Crores to develop infrastructure for labour intensive units, attract investment and generate employment. Disbursement of funds is conditional on the State completing due process including award of contracts and procurement formalities so the central government can release funds to start the project.