Government Approves IFLDP for Continuation with an Outlay of Rs. 1700 crore

Union Cabinet approved Indian Footwear and Leather Development Programme (IFLDP), erstwhile IFLADP, for continuation from 2021-22 with a financial outlay of Rs. 1700 crore till 31st March 2026 or till further review, whichever is earlier.

IFLDP has been approved by the Union Cabinet on January 19,2022 as continuation of the erstwhile Indian Footwear Leather and Accessories Development Programme (IFLADP).

• Aim – To develop infrastructure for the leather sector, address environmental concerns specific to the leather sector, facilitate additional investments, employment generation and increase in production.

Sub-schemes approved under IFLDP (2021-26):

i.Sustainable Technology and Environmental Promotion (proposed outlay Rs.500 crore) – Special Purpose Vehicle constituted for each CETP would be provided assistance at 70 percent of the total project cost for other areas with 30 percent industry’s/beneficiary share within a limit of Rs.200 crore.

• Special Purpose Vehicle constituted for each CETP would be provided assistance @ 80% of the total project cost for Northeastern Areas with industry’s/beneficiary share to be 20% of the project cost.

ii.Integrated Development of Leather Sector (IDLS) sub-scheme (proposed outlay Rs.500 crore) – Assistance would be provided to the sectoral units for their modernization, capacity expansion, technology up-gradation on or after 1st January 2020 at 30 percent to Micro Small and Medium Enterprises (MSME) units and 20 percent to other units.

• For NE Areas , assistance at 40 percent of the cost of plant & machinery to MSME units and 30 percent to other units with additional 5 percent financial assistance for the domestically manufactured plant and machinery.
• Maximum assistance upto Rs.15 crore per product will be provided for investment in Plant and Machinery by MSME.

iii.Establishment of Institutional Facilities (proposed outlay Rs.200 crore) – Setting up of International Testing Centre, Sports Complex, replacement of conventional lights with Light emitting diodes (LED) lights and construction of girls hostel in Footwear Design and Development Institute (FDDI) campuses are planned.   

iv.Mega Leather Footwear and Accessories Cluster Development (MLFACD) (proposed outlay Rs.300 crore) – The sub-scheme aims at integrating the production chain according to the needs of the leather and footwear industry for domestic market and also exports.

• Graded assistance is proposed to be provided at 50 percent of the project cost or at 70 percent of the project cost in NE areas at a  limit up to Rs. 125 crore.

v.Brand Promotion of Indian Brands in Leather and Footwear Sector (proposed outlay Rs.100 crore) – The Government of India (GoI) provides assistance of about 50 percent of total project cost with a limit of Rs 10 crore for each brand in next 3 year and also promotes 10 Indian brands in the International Market in 3 years.

The designated agency to implement the sub-scheme is being proposed to be selected amongst institutes like NID, NIFT, IBEF, IIFT or Institutes of similar standing. 

vi.Development of Design Studios (proposed outlay Rs.100 crore) – Assistance would be provided to develop 10 Indian design studios that will promote marketing or export linkages, display designs to international buyers and work as interface for the trade fairs. 

Highlights:

i.The programme has a direct benefit towards quality employment generation especially for women, skill development, decent work, making the industry more environment friendly and prompting a sustainable production system.

ii.IFLAD Programme have benefitted population in terms of reduction of poverty, gender equality, sector specific skill and education.

iii.From 2017-2020, IFLDP succeeds in skilling more than 3.24 lakh persons.

Recent related news:

As per the data of the Ministry of Commerce and Industry (MoCI) India’s merchandise exports in December 2021 increased to 38.91 percent on an annual basis to USD 37.81 billion, the highest-ever monthly figure and the Imports also increased by 38.55 percent to USD 59.48 billion. The trade deficit was widened to USD 21.68 billion during December 2021.

About Ministry of Commerce & Industry (MoCI):
Union Minister – Piyush Goyal (Maharashtra)
Minister of State – Som Parkash (Hoshiarpur, Punjab), Anupriya Patel(Mirzapur, Uttar Pradesh)