Lok Sabha Question No. 779 (UNSTARRED), answered on 2019-06-26
Subject: Implementation of IFLADP
Ministry: COMMERCE AND INDUSTRY
Asked by: Shobha Karandlaje

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 779. TO BE ANSWERED ON WEDNESDAY, THE 26 TH  JUNE, 2019.

## IMPLEMENTATION OF IFLADP

## 779.   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 the 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 मंत्री (श्री पीयूष गोयल) THE MINISTER OF COMMERCE & INDUSTRY (SHRI  PIYUSH GOYAL)

- (a): Yes,  the  Central  Government  has  approved  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. Sub-schemes under Indian Footwear, Leather & Accessories Development Programme are as stated below:
1.  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.
2.  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.
3.  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.
4.  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.
5. 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 subject to a limit of Rs. 200 crore. The subscheme  also  provides  for  support  to  national  level  sectoral  industry council/ association and support for preparation of vision document for leather footwear and accessories sector.
6.  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.
7.  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): To facilitate  upgradation of infrastructure and job creation, assistance amounting to Rs. 65.24 crore has been provided for modernization/upgradation of 171 leather and footwear units under Integrated Development of Leather Sector sub-scheme of IFLADP since 2017-18.

Further,  upgradation  of  seven  Footwear  Design  and  Development Institute  (FDDI)  campuses  at  Noida,  Chennai,  Hyderabad,  Jodhpur, Patna,  Kolkata  and  Rohtak  into  Centres  for  Excellence  (CoEs)  with total  project  cost  of  Rs.  129.62  crores  has  been  approved  under 'Establishment of Institutional Facilities' sub-scheme of IFLADP.

To  address  environment  sustainability,  upgradation  of  11  Common Effluent Treatment Plants (CETPs) in Tamil Nadu with GOI assistance of  Rs.  354.53  crore  has  been  approved  under  'Leather  Technology Innovation and Environment Issues' sub-scheme of IFLADP.

- (c): Under 'Mega Leather Footwear and Accessories Cluster' sub-scheme of  IFLADP,  'In-principle'  approval  has  been  accorded  to  the  project 'Setting  up  of  Mega  Leather  Footwear  and  Accessories  Cluster  at Calcutta Leather Complex, Bantala, Kolkata'.
- (d) & (e): Under  Human  Resource  Development  (HRD)  sub-scheme  of  the IFLADP, following number of persons have been provided primary skill development training and placed during last three years:

| Year      | Training Target   | Persons Trained   | Persons Placed   |
|-----------|-------------------|-------------------|------------------|
| 1,44,000  | 1,45,164          | 1,16,772          | 2016-17          |
| 1,44,000  | 94,232            | 71,125            | 2017-18          |
| 1,70,000  | 89,904*           | 62,041            | 2018-19*         |
| 4.34 Lakh | 1,84,136          | 1,33,166          | Total            |

*Training ongoing.

Leather sector has been identified as one of the focus sectors under Make in India programme of the Government of India. The implementation  of  IFLADP  scheme  would  lead  to  development  of infrastructure  for  the  leather  sector,  enhance  production,  address environment concerns specific to the leather sector, facilitate additional investments and generate employment.

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