Press Information Bureau

Government of India

Ministry of Commerce & Industry

07-May-2012 15:22 IST

Leather Exports

Leather parks related to a sub-scheme during the 11th Plan Period for addressing the infrastructure constraints being faced by Leather Industry in the country. Since, the sub-scheme could not attract the interest of Leather Industry, a new sub- scheme namely “Mega Leather Cluster (MLC)” has been introduced in lieu of this sub-scheme with the same objective and a much broader ambit. The MLC scheme provides for Government grant for different sizes of Mega Leather Clusters to address the infrastructure constraints of Indian Leather Sector. The sub-scheme (MLC) has been notified on 20 March 2012. The guidelines of the sub-scheme (MLC) have been hosted on the website of the DIPP.

For promotion of exports, Government of India has identified leather sector as a Focus Sector in Foreign Trade Policy 2009-14 which, inter- alia, includes facilities such as (a) allowing duty free import of critical inputs to the extent of 3% of FOB value of export realization in the previous year (b) duty credit scrip of 4% for notified leather products and footwear & 2% duty credit scrip for finished leather under Focus Product Scheme (c) Zero Duty Export Promotion Capital Goods Scheme (EPCG) to facilitate import of machinery (d) 1 % duty credit scrip under Status Holders Incentive Scrip Scheme for status holders in leather sector (except finished leather segment) for import of capital goods under actual user condition.

This information was given by Shri Jyotiradiya M. Scindia, Minister of State for Commerce & Industry in written reply to a question in Lok Sabha today.

DS/GK

Mega Leather Cluster scheme expands infrastructure grants for the leather industry alongside targeted export incentive measures. The Mega Leather Cluster (MLC) sub scheme, notified on 20 March 2012, replaces the earlier leather parks sub scheme and provides Government grants for different sizes of clusters to address infrastructure constraints in the leather industry; guidelines are hosted on the DIPP website. The leather sector is a Focus Sector under the Foreign Trade Policy 2009-14 and benefits from export promotion measures including duty free import of critical inputs relative to prior export FOB realization, duty credit scrips for notified products and finished leather, zero duty EPCG access for machinery imports, and a status holder incentive scrip for capital goods under actual user conditions.