Government has approved special package for employment generation in leather and footwear sector. The package involves implementation of Central Sector Scheme ‘Indian Footwear, Leather & Accessories Development Programme (IFLADP)’ with an approved expenditure of ₹ 2,600 crores over the three financial years from 2017-18 to 2019-20. This information was given by Minister of State of Commerce and Industry, Shri C.R. Chaudhary in a written reply in the Rajya Sabha today. The Minister informed the House that there are seven sub-schemes under IFLADP and listed out the various details of the sub-schemes:

(i) Human Resource Development (HRD) sub-scheme provides assistance for Placement Linked Skill Development training to unemployed persons @ ₹ 15,000 per person, for skill up-gradation training to employed workers @ ₹ 5,000 per employee and for training of trainers @ ₹ 2 lakhs per person.

(ii)   Integrated Development of Leather Sector (IDLS) sub-scheme incentivizes investment and manufacturing including job creation by providing backend investment grant/subsidy @ 30% of the cost of new Plant and Machinery to Micro, Small & Medium Enterprises (MSMEs) and @ 20% of the cost of Plant and Machinery to other units for modernization /technology upgradation in existing units and also for setting up of new units.

(iii) Establishment of Institutional Facilities sub-scheme provides assistance to Footwear Design & Development Institute (FDDI) for upgradation of some of the existing campuses of FDDI into "Centers of Excellence" and establishing 3 new fully equipped skill centers alongside the upcoming Mega Leather Cluster.

(iv) Mega Leather, Footwear and Accessories Cluster (MLFAC sub-scheme provides infrastructure support to the Leather, Footwear and Accessories Sector by establishment of Mega Leather, Footwear and Accessories Cluster. Graded assistance is provided up to 50% of the eligible project cost, excluding cost of land with Government assistance being limited to ₹ 125 crores.

(v) Leather Technology, Innovation and Environmental sub-scheme, assistance is provided for upgradation/installation of Common Effluent Treatment Plants (CETPs) @ 70% of the project cost. The sub-scheme also provides for support to national level sectoral industry council/ association and support for preparation of vision document for Leather Footwear and Accessories Sector.

(vi)  Promotion of Indian Brands in Leather, Footwear and Accessories sub-scheme, eligible units approved for Brand Promotion are assisted. Government assistance is limited to 50% of total project cost subject to a limit of ₹ 3 crores for each brand, each year for 3 years.

(vii) Additional Employment Incentive for Leather, Footwear and Accessories Sector scheme, employers' contribution of 3.67% to Employees' Provident Fund for all new employees in Leather, Footwear and Accessories sector are provided for enrolling in EPFO for first 3 years of their employment.

Employment generation package expands incentives for training, investment, cluster infrastructure, environmental upgrades and employer EPF support. The special package implements the Indian Footwear, Leather & Accessories Development Programme (IFLADP) through seven sub schemes: placement linked and up skilling training with per trainee support; backend grants for plant and machinery to incentivize new units and modernization with preferential rates for MSMEs; institutional upgrades and new skill centres; graded infrastructure support for Mega Leather Clusters with capped government funding; funding for Common Effluent Treatment Plants; per brand marketing assistance; and an employer contribution subsidy for new employees during their initial employment period.