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. This information was given by Minister of State of Commerce and Industry, C.R. Chaudhary in a written reply in the Rajya Sabha today. The minister informed the House that there are seven sub-schemes under IFLADP.
The first, Human Resource Development (HRD) sub-scheme provides assistance for placement linked skill development training to unemployed persons at Rs. 15,000 per person, for skill up-gradation training to employed workers at Rs. 5,000 per employee and for training of trainers at Rs. 2 lakh per person.
Integrated Development of Leather Sector (IDLS) sub-scheme incentivizes investment and manufacturing including job creation by providing backend investment grant/subsidy at 30% of the cost of new Plant and Machinery to Micro, Small & Medium Enterprises (MSMEs) and at 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 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 or MLFAC sub-scheme 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, assistance is provided for upgradation/installation of Common Effluent Treatment Plants (CETPs) at 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, 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.
The seventh is the 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.