Special Package for Employment Generation in Leather and Footwear Sector

Cabinet-approves-special-package-for-employment-generation-in-leather-and-footwear-sector

Government has approved special package for employment generation in leather and footwear sector.

  • The package involves implementation of Central Sector Scheme ‘Indian Footwear, Leather & Accessories Development Programme (IFLADP)’ with an approved expenditure of Rs. 2,600 crores over the three financial years from 2017-18 to 2019-20.

Indian Footwear Leather & Accessories Development Programme (IFLADP)

Major Impact:

  • 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.

There are seven sub-schemes under IFLADP and listed out the various details of the sub-schemes:

  • Human Resource Development (HRD) sub-scheme :-
    It provides assistance for Placement Linked Skill Development training to unemployed persons @ Rs. 15,000 per person, for skill up-gradation training to employed workers @ Rs. 5,000 per employee and for training of trainers @ Rs. 2 lakhs per person.
  • Integrated Development of Leather Sector (IDLS) sub-scheme :-
    It incentivizes investment and manufacturing including job creation by providing backend investment grant/subsidy @ 30% of the cost of new Plant and Machinery to Micro, Small & Medium Enterprises (MSMEs) and @ 20% of the cost of Plant and Machinery to other units for modernization /technology upgradation in existing units and also for setting up of new units.
  • Establishment of Institutional Facilities sub-scheme :-
    It provides assistance to Footwear Design & Development Institute (FDDI) for upgradation of some of the existing campuses of FDDI into “Centers of Excellence” and establishing 3 new fully equipped skill centers alongside the upcoming Mega Leather Cluster.
  • Mega Leather, Footwear and Accessories Cluster (MLFAC) sub-scheme :-
    It provides infrastructure support to the Leather, Footwear and Accessories Sector by establishment of Mega Leather, Footwear and Accessories Cluster. Graded assistance is provided up to 50% of the eligible project cost, excluding cost of land with Government assistance being limited to Rs. 125 crores.
  • Leather Technology, Innovation and Environmental sub-scheme :- 
    The assistance is provided for upgradation/installation of Common Effluent Treatment Plants (CETPs) @ 70% of the project cost. The sub-scheme also provides for support to national level sectoral industry council/ association and support for preparation of vision document for Leather Footwear and Accessories Sector.
  • Promotion of Indian Brands in Leather, Footwear and Accessories sub-scheme :-
    The eligible units approved for Brand Promotion are assisted. Government assistance is limited to 50% of total project cost subject to a limit of Rs.3 crores for each brand, each year for 3 years.
  • Additional Employment Incentive for Leather, Footwear and Accessories Sector scheme :-
    Employers’ contribution of 3.67% to Employees’ Provident Fund for all new employees in Leather, Footwear and Accessories sector are provided for enrolling in EPFO for first 3 years of their employment.

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