The Central government has approved a special package for employment generation in the leather and footwear industries in India. The package involves the implementation of Central Sector Scheme - Indian Footwear, Leather and Accessories Development Programme (IFLADP), with an approved expenditure of Rs 2,600 crore from 2017-2020.
The scheme aims to develop infrastructure for the leather sector, addressing environmental concerns specific to the sector, facilitate additional investments, generate employment and increase production. Enhanced tax incentives will attract large-scale investments to this sector and reforms in the labour laws taking into account the seasonal nature of the sector will support economies of scale.
For the upliftment of the leather industry in Tamil Nadu under the IFLADP, four projects with a total outlay of Rs 107.33 crore have been approved by the Department of Industrial Policy and Promotion (DIPP).
The projects that have been approved in Tamil Nadu are upgradation of Tala Trichy Common Effluent Treatment Plant (CETP) at Trichy, Pallavaram CETP at Nagalkeni Chrompet, and SIDCO Phase-I CEPT at Ranipet and Perundurai leather industries Eco Security Pvt. Ltd. at Erode.
DIPP has also given in-principal approval for a mega leather cluster at Bantala in West Bengal. This will generate employment for around 7,000 people and lead to an investment of Rs 400 to 500 crore.