Union Government gives special package for employment generation in Leather and Footwear sector

The Union Cabinet chaired by Prime Minister Shri Narendra Modi on December 15 approved the special package for employment generation in leather and footwear sector. The package involves implementation of Central Sector Scheme “Indian Footwear, Leather & Accessories Development Programme” with an approved expenditure of Rs. 2600 Crore over the three financial years from 2017-18 to 2019-20.

The scheme would lead to development of infrastructure for the leather sector, address environment concerns specific to the leather sector, facilitate additional investments, employment generation and increase in production. Enhanced Tax incentive would attract large scale investments in the sector and reform in labour law in view of seasonal nature of the sector will support economies of scale.

The Special Package has the potential to generate 3.24 lakhs new jobs in 3 years and assist in formalization of 2 lakh jobs as cumulative impact in Footwear, Leather & Accessories Sector.

Leather Technology, Innovation and Environmental Issues sub-scheme: Under this sub-scheme, assistance is proposed to be provided for upgradation/installation of Common Effluent Treatment Plants (CETPs) @ 70% of the project cost. The sub-scheme will also provide support to national level sectoral industry council/ association and support for preparation of vision document for Leather Footwear and Accessories Sector. The proposed outlay for this sub-scheme is Rs. 782 crore for the three years.

Promotion of Indian Brands in Leather, Footwear and Accessories Sector sub-scheme: Under this sub-scheme, the eligible units approved for Brand Promotion are proposed to be assisted. The Government assistance is proposed to be 50% of total project cost subject to a limit of Rs.3 crore for each brand, each year for 3 years. The proposal under this sub-scheme is to promote 10 Indian brands in the international market in three years with proposed outlay of Rs. 90 crore.