Rs. 1251.29 cr outlay for leather industry in 12th plan

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SME Times News Bureau | 14 Dec, 2011
In order to promote leather industry, the government is implementing Indian Leather Development Programme (ILDP) in the 12th Five year plan with an outlay of Rs.1251.29 crore, informed Jyotiradiya M. Scindia, Minister of State for Commerce & Industry in written reply to a question in Lok Sabha on Monday.

Scindia said, "The Government is implementing Indian Leather Development Programme in the 12th Five year plan with an outlay of Rs.1251.29 crore in order to promote the growth of the sector in critical areas namely capacity modernization & technological upgradation, environment management, human resources development etc."

However, leather industry was seaking a larger outlay of Rs 3,000 crore under ILDP for the 12th Plan. During the 11th Plan, Rs 253 crore was allotted under ILDS scheme.

"Leather industry has requested for higher outlay for the 12th plan under ILDP so as to achieve our objective of ensuring equitable and sustainable growth in the coming years,” chairman of Council for Leather Exports (CLE), M Rafeeque Ahmed earlier told media.

Scindia told Lok Sabha that the decline in exports during the year 2009-10 was due to the adverse impact of the global financial crisis.

Scindia also said that for promotion of exports, Government of India had identified leather sector as a focus sector in Foreign Trade Policy 2009-14.

This include facilities such as; a) duty free import of critical inputs to the extent of 3 percent of FOB value of export realization in the previous year; b) duty credit scrip of 4 percent for notified leather products and footwear & 2 percent 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 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.

As a result of various steps taken by the Government, the export of leather products has increased in the year 2010-11, Scindia added.