In view of the importance of the leather sector for economy and social equity, GOI has approved an ambitious plan with an outlay of Rs. 912.67 crore namely "Indian Leather Development Programme" with emphasis on Infrastructure Development, Capacity Building & Human Resource Development, Investment Promotion and Environmental Issues for the industry for implementation during XI plan period.

In order to meet the growing demand of leather technologist, workers and designers, 3 new institutes on the pattern of FDDI Noida would be set up at Chennai, Rohtak and Kolkata with an outlay of Rs. 96.69 crore each. FDDI at Rohtak would be developed as a world class design institute. The institutes would be operational from the academic year 2011-12. HRD Mission with an outlay of Rs. 60 crore would target training of non-traditional potential work force in the rural areas. This project would train and prepare individuals in the rural areas in cutting, skiving and stitching and would place atleast 75% of those trained in the industry. It also includes skill up-gradation programs for workers of organized & un-organized sector.

The scheme 'Support to Artisan' with an outlay of Rs. 40 crore would provide design support, corpus of revolving funds for obtaining bulk raw material, grant based livelihood support, marketing support/linkages and also bank linkages with an objective to ensure better and higher returns to the artisans. Under 'Saddlery Development' Rs. 10 crore has been allocated for providing R&D support to the Saddlery and harness. In order to enable industries to cope with the stringent pollution control norms, an allocation of Rs. 200 crores has been made in the XI Five Year Plan to meet environmental concerns. Such projects for addressing environmental concerns would be funded with 50% grants from Central Government, 15% from State Government and balance 35% from the Industry. The industry would bear the entire Operation and Maintenance costs.

World-class infrastructure is the key to globally competitive leather industry and a Leather Tanning Complex would be set up at Nellore during XI Plan by State Government of A.P with support of Rs 29 crore from GOI. With an aim to enhance capacity and increase investment in the sector the scheme "Integrated Development of Leather Sector" (IDLS), a scheme for providing capital subsidy for modernization of leather units has been modified, allowing assistance to new units and raising the limit of subsidy to Rs. 2 crores from the existing Rs. 50 lakh per unit. A provision of Rs.253.43 crores is provided in the XI plan for the purpose.

Indian Leather industry is an important component of Indian Manufacturing sector. The sector is labor intensive, with 30% of the work force being women and majority of workers from weaker section. The sector thus has strong linkage with rural economy and high impact on social equity.

RJ/

Leather sector development programme expands training, subsidy support and co funded environmental measures to boost skills and competitiveness. The Indian Leather Development Programme for the XI Plan period is a federal initiative funding infrastructure, capacity building, HRD and environmental compliance: it provides for three new institutes, an HRD Mission to train rural non traditional workers with placement targets, artisan support and saddlery R&D, a revised capital subsidy scheme extending assistance to new units, and a co funded environmental grant mechanism with industry bearing operation and maintenance.