Mega leather cluster aims to support industry broadly: Scindia

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SME Times News Bureau | 08 May, 2012
The new sub-scheme namely "Mega Leather Cluster (MLC)" is a substitute for leather parks sub-scheme with a much broader spectrum, said Jyotiradiya M. Scindia, Minister of State for Commerce & Industry in written reply to a question in Lok Sabha on Monday.

He said, "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 allowing duty free import of critical inputs to the extent of 3 percent of FOB value of export realization in the previous year, Zero Duty Export Promotion Capital Goods Scheme (EPCG) to facilitate import of machinery.

Also duty credit scrip of 4 percent for notified leather products and footwear & 2 percent duty credit scrip for finished leather under Focus Product Scheme.

And 1 percent 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, informed minister.