Lok Sabha Question No. 3208 (UNSTARRED), answered on 2018-12-31
Subject: IFLADP Scheme
Ministry: COMMERCE AND INDUSTRY
Asked by: PRATHAP SIMHA, SHOBHA KARANDLAJE

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

UNSTARRED QUESTION NO. 3208.

TO BE ANSWERED ON MONDAY, THE 31 ST   DECEMBER, 2018.

## IFLADP SCHEME

## 3208.  SHRI PRATHAP SIMHA: KUMARI SHOBHA KARANDLAJE:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज्य एवं उद्योग मंत्री

- (a) whether the Government has approved implementation of the Central Sector Scheme 'Indian Footwear, Leather & Accessories Development Programme (IFLADP)' recently  and  if  so,  the  details  thereof  including  its  objectives  and outlay;
- (b) the details of projects approved to facilitate upgradation of infrastructure, job creation and environmental sustainability ;
- (c) whether  the  Government  has  given  in-principle  approval  for  setting  up  of Mega Leather Clusters in the country and if so, the details thereof, State-wise;
- (d) the  number  of  persons  employed  in  leather  and  footwear  industry  under Human Resource Development sub-scheme of Indian Leather Development Programme  during  the  last  three  years  and  the  impact  of  'Make  in  India' initiative on leather sector; and
- (e) the  steps  taken/proposed  to  be  taken  by  the  Government  for  employment generation in this sector?

## ANSWER

## वाणिज् य एवं उद्योग मंत्रालय में राज् यमंत्री (श्री सी.आर. चौधरी) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI C.R. CHAUDHARY)

- (a): Yes.  The  Central  Government  has  approved  Central  Sector  Scheme "Indian Footwear, Leather and Accessories Development Programme" with an approved  expenditure  of  Rs.  2600  crore  over  the  three  financial  years  from 2017-18 to 2019-20. The objective of the scheme is to develop infrastructure for  the  leather  sector,  address  environment  concerns  specific  to  the  leather sector, facilitate additional investments, employment generation and increase in  production.  The  following  sub-schemes  would  be  implemented  under IFLADP scheme during 2017-18 to 2019-20 -

## I. Human Resource Development (HRD) sub-scheme :

HRD sub-scheme 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 lakh per person.

## II. Integrated Development of Leather Sector (IDLS) sub-scheme :

IDLS sub-scheme 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.

## III. Establishment of Institutional Facilities sub-scheme:

The sub-scheme provides assistance to Footwear Design & Development Institute (FDDI) for upgradation of some of the existing campuses of FDDI into  "Centres  of  Excellence"  and  establishing  3  new  fully  equipped  skill centres alongside the upcoming Mega Leather Cluster.

## IV. Mega  Leather,  Footwear  and  Accessories  Cluster  (MLFAC)  subscheme:

The  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  upto 50%  of  the  eligible  project  cost,  excluding  cost  of  land  with  maximum Government assistance being limited to Rs. 125 crore.

## V. Leather  Technology,  Innovation  and  Environmental  Issues  subscheme:

Under this sub-scheme, 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.

## VI. Promotion of Indian Brands in Leather, Footwear and Accessories Sector sub-scheme :

Under this  sub-scheme,  the  eligible  units  approved  for  Brand  Promotion are assisted. The Government assistance is limited to 50% of total project cost subject to a limit of Rs.3 crore for each brand, each year for 3 years.

## VII. Additional Employment Incentive for Leather, Footwear and Accessories Sector sub-scheme:

Under  this  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.

- (b): Under 'Leather Technology Innovation and Environment Issues (LTIEI)' subscheme of IFLADP scheme,  upgradation of 11 Common Effluent Treatment Plants  (CETPs)  in  Tamil  Nadu  with  Government  of  India  assistance  of  Rs. 354.53 crore has been approved. Further, under 'Establishment of Institutional Facilities'  sub-scheme  of  IFLADP  scheme,  upgradation  of  seven  Footwear Design and Development Institute (FDDI) centers into Centres for Excellence (CoEs) at the cost of Rs. 129.62 crore has been approved.
- (c): Under  'Mega  Leather  Footwear  and  Accessories  Cluster  (MLFAC)'  subscheme  of  IFLADP  scheme,  approval  has  been  provided  for  setting  up  of Mega Leather Footwear and Accessories  Cluster  with  Government  of  India assistance  of  Rs.  125  crores  at  Kota  Mandal,  Nellore  District,  Andhra Pradesh. Further, In-principle approval has been given for setting up of Mega Leather Footwear and Accessories Cluster at Bantala, Kolkata, West Bengal.
- (d): Under  Human  Resource  Development  (HRD)  sub-scheme  of  the  IFLADP scheme,  the  following  number  of  persons  have  been  provided  primary  skill development training during last three years -

| Year     | No. of persons Trained   | No. of persons Placed   |
|----------|--------------------------|-------------------------|
| 1,45,164 | 1,16,772                 | 2016-17                 |
| 94,232   | 72,368                   | 2017-18                 |
| 25,643   | 25,319                   | 2018-19*                |

*Training ongoing.

- (e): Under  Human  Resource  Development  (HRD)  sub-scheme  of  the  IFLADP scheme,  primary  skill development  training is  provided  to  unemployed persons @ Rs. 15,000 per person. The placement of 75% of trained persons is mandatory for availing assistance under primary skill development training programme. For the year 2018-19 and 2019-20, a target for providing primary skill development training to 1,40,000 unemployed persons during each year has been assigned to implementing agencies under the scheme.

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