Lok Sabha Question No. 3612 (UNSTARRED), answered on 2015-12-21
Subject: Leather Industry
Ministry: COMMERCE AND INDUSTRY
Asked by: JYOTI DHURVE, SAUGATA ROY, SUBHASH RAMRAO BHAMRE

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

## LOK SABHA

UNSTARRED QUESTION NO. 3612.

TO BE ANSWERED ON MONDAY, THE 21 ST     DECEMBER, 2015.

## LEATHER INDUSTRY

3612.

SHRIMATI JYOTI DHURVE:

PROF. SAUGATA ROY:

DR. SUBHASH BHAMRE:

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

वाणिज् यवव द्यग ं ्री

- (a) whether the Government proposes to spend a huge amount on leather sector during  the  12th  Plan  period  under  Indian  Leather  Development  Programme (ILDP) and if so, the details thereof;
- (b) whether  some  of  the  programmes  initiated  during  the  11th  Plan  period  for leather  sector are likely to be carried forward during the 12th Plan and if so, the details thereof;
- (c) whether the Government has noticed that recent hurdles like Cow Slaughter Ban will have an adverse impact on leather industry and if so, the corrective measures taken by the Government in this regard;
- (d) the details of schemes being implemented by the Government for development of    leather  sector  along  with  the  funds  allocated/released  and utilized thereunder during the said period, scheme and State/UT-wise; and
- (e) the incentives and facilities provided to leather based industries along with the facilities  made available to labourers engaged in the said sector at present, State/UT- wise?

## ANSWER

## वाणिज् यवव द्यग ााज् यं ्रीस् वतं ््रभााा(स्रींतंरीिरंमलााीरीतंाांि( THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF COMMERCE & INDUSTRY (SHRIMATI NIRMALA SITHARAMAN)

- (a): The  Government  has  approved  implementation  of  Indian  Leather Development  Programme  with  an  outlay  of  Rs.  990.36  crore  for  the XIIth Five Year Plan.
- (b): The following sub schemes have been continued from 11 th plan to 12 th plan under Indian Leather Development Programme.
- 1)  Integrated Development of Leather Sector (IDLS)
- 2)  Human Resource Development (HRD)
- 3) Support to Artisan
- 4)  Establishment of Institutional Facilities
- 5)  Leather Technology, Innovation & Environmental Issues
- 6)  Mega Leather Cluster
- (c): Hides and Skins of Fallen and slaughtered animals come from various sources  which  involve  many  stake  holders  like  slaughter  houses, merchants, market places, mandis etc. Also, a sizeable portion of  the hides  procured  in  India  are  from  fallen  animals.  Besides,  the  industry imports hides, skins and leathers from various countries.
- (d) & (e): The  Indian  Leather  Development  Programme  comprises  the  following six sub-schemes:

## 1)  Integrated Development of Leather Sector (IDLS)

- (i)  Assistance is provided for technology up-gradation / modernization of  leather  units  as  investment  grant  @30% to small & micro units and @20% to other units through nationalized bank with maximum assistance of Rs. 2 crore for each product line.
- (ii)  524 new  cases  have  been  approved  till date involving  GOI assistance  of  Rs.  110.79  crore  and  total  investment  of  Rs.449.81 crore.  Out  of  these  524  cases,  313  cases  have  already  been disbursed  GOI  assistance  of  Rs.49.47  crore.  Further,  Rs.60.42 crore has been released to settle the pending claims of 494 cases of  11 th Plan  period.  Rs.  1.18  crore  has  been  released  to  Project Implementing  Units  as  implementation  charge.  Total  Rs.  111.07 crore has been released under the sub-scheme.

## 2)  Human Resource Development (HRD)

- (i)  Assistance  is  provided  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  training  of  trainers  @  Rs.  2  lakh  per  person.  The placement  of  75%  of  trained  persons  is  mandatory  for  availing assistance related to skill development training component.
- (ii)  Placement  linked  skill  development  training  is  being  provided  to unemployed persons by Footwear Design and Development Institute (FDDI), Noida @  12,000 persons per month. Skill upgradation  training  is  started  for  20,000  workers  by  Government College of Engineering and Leather Technology (GCELT), Kolkata.
- (iii)   286164 unemployed persons have been provided placement linked skill development training in Noida, Agra, Fursatganj, Kanpur, RaeBareili,  Kolkata,  Chennai, Rohtak, Bahadurgarh, West Bengal and North East States with GOI assistance of Rs. 258.52 crore. Out of these,  229805 trainees (80%) have been provided employment in the leather sector.

## The status of HRD sub-scheme for 12 th FYP is as given:

| 12 th FYP Year-wise Data     | 12 th FYP Year-wise Data   | 12 th FYP Year-wise Data   | 12 th FYP Year-wise Data   |
|------------------------------|----------------------------|----------------------------|----------------------------|
|                              | No. of persons trained     | No. of persons placed      | %age                       |
| 2012-13                      | 27560                      | 21222                      | 77                         |
| 2013-14                      | 63050                      | 49987                      | 79                         |
| 2014-15                      | 138608                     | 113244                     | 82                         |
| 2015-16*                     | 56946                      | 45352                      | 80                         |
| Total                        | 286164                     | 229805                     | 80                         |
| Secondary Training (2014-15) | 6000                       | 6000                       |                            |
| Total                        | 292164                     | 235805                     | 80                         |

(Persons in million)

## STATEWISE DETAILS of PLSDP TRAINEES (From April 2014 to October 2015)

| State              |   No. of Trainees |
|--------------------|-------------------|
| Andaman & Nicobar  |                 0 |
| Andhra Pradesh     |              1145 |
| Arunachal Pradesh  |                 3 |
| Assam              |                67 |
| Bihar              |              5555 |
| Chandigarh         |               102 |
| Chhattisgarh       |                48 |
| Dadar Nagar Haveli |                 0 |
| Daman & Diu        |                 0 |
| Delhi              |             11675 |
| Goa                |                 0 |
| Gujarat            |                19 |
| Haryana            |              7073 |
| Himachal Pradesh   |              1650 |
| Jammu & Kashmir    |                32 |
| Jharkhand          |               288 |
| Karnataka          |              1197 |
| Kerala             |                83 |
| Lakshyadeep        |                 0 |
| Madhya Pradesh     |               386 |

| Maharashtra             |    865 |
|-------------------------|--------|
| Manipur                 |      0 |
| Meghalaya               |      0 |
| Mizoram                 |      0 |
| Nagaland                |      1 |
| Odisha                  |    118 |
| Puducherry              |    486 |
| Punjab                  |   2655 |
| Rajasthan               |   8405 |
| Sikkim                  |      1 |
| Tamil Nadu              |  25852 |
| Telangana               |      3 |
| Tripura                 |      2 |
| Uttar Pradesh           |  86633 |
| Uttrakhand              |   6005 |
| West Bengal             |  34600 |
| Total till October 2015 | 194949 |

## 3)  Support to Artisan scheme

- (i)  Assistance  is  provided  for  Support  to  Artisans  for  formation  of  Self  Help Groups (SHGs), Product development, capacity building, providing Centralized  Common  Facilities  Centers  and  marketing  linkages  for  30,000 artisans.
- (ii)  31538  artisans  have  been  covered  in  Jaipur,  Alwar,  Jodhpur,  Patiala,  RaiBareilly,  Maharashtra,  West  Bengal  with  GOI  assistance  of  Rs.60.37  crore. Rs. 2.71 crore has been released to settle pending claims. Total Rs. 63.02 crore has been released under the sub-scheme.

## State-wise details of trainees:

State wise details of trainees

## Training Details:

| S. No.   | Cluster        |   No. of Trainees |
|----------|----------------|-------------------|
| 1        | Alwar / Jaipur |              5041 |
| 2        | Jodhpur        |              5101 |
| 3        | Punjab         |              5100 |
| 4        | Rae Bareli     |              5029 |
| 5        | West Bengal    |              5100 |
| 6        | Maharashtra    |              5031 |
| Total    | Total          |             30402 |

## 4)  Leather Technology, Innovation & Environmental Issues

- (i)  Assistance is provided for upgradation/installation of Common  Effluent Treatment Plants (CETPs) @ 50% of the project cost. It is also proposed to provide support for Pilot Projects under Technology Benchmarking for leather units, organizing Environment Related Workshops and Pilot projects for Solid Waste Management.
- (ii)  Assistance has been provided for two CETP projects in Tamil Nadu. Rs.11.19 crore (Rs.6.73 in 2012-13 and Rs.4.46 crore in 2013-14) have been released. One  CETP  project  i.e.  SIDCO-II  at  Ranipet  has  been  completed.  Another CETP project i.e. Dintec at Dindigul is expected to be completed in 2014-15.
- (iii)  One  Project  of  Solid  Waste  Management  in  Calcutta  Leather  Complex  by Central Leather Research Institute (CLRI), Chennai has been approved with GOI assistance of Rs. 95.12 lakh. Rs. 0.57 Lakh has been released to CLRI for this project in FY 2015-16.

## 5)  Mega Leather Cluster scheme

- (i)  This  sub-scheme  aims  at  providing  infrastructure  support  to  the  Leather Industry by establishment of Mega Leather Cluster. The minimum land area required for Mega Leather Cluster is 25 acres to be set up without tanneries and 40 acres with tanneries.
- (ii)  Graded  GOI  assistance  is  provided  upto  50%  of  the  project  cost  excluding cost  of  land  with  maximum  GOI  assistance  being  limited  to  Rs.  125  crore which is detailed as below:
- (a) MLC of 25-60 acres land (to be set up without tanneries) and 40-60 acres land (to be set up with tanneries)- GoI assistance limited to Rs 50 crore;
- (b) MLC of 61-100 acres land- GoI assistance limited to Rs 70 crore;
- (c) MLC of 101-150 acres land- GoI assistance limited to Rs.105 crore;
- (d) MLC of more than 151 acres land- GoI assistance limited to Rs 125 crore.
- (iii)  It  is  proposed  to  provide  support  for  establishment  of  at  least  two  MLCs  all over India during 12 th Plan period. A panel of Project  Management Consultants (PMC) has been appointed.

## 6)  Establishment of Institutional Facilities

- (i)  Department has approved establishment of two new branches of FDDI in the States  of  Punjab  and  Gujarat  with  GOI  assistance  of  Rs.100  crore  each branch.  Construction  work  is  in  progress.  The  status  of  fund  release  is  as given below:

| Branch                       | Funds Released   |
|------------------------------|------------------|
| Ankleshwar (Gujrat) 83 Crore |                  |
| Banur (Punjab)               | 46.36 Crore      |
| Total                        | 64 Crore         |

The  funds  release  and  utilized  under  Indian  Leather  Development  Programme (ILDP) during 12 th FYP is as given under:

(Rs. in Crores)

|   Year |   Funds Released | Funds Utilized   |
|--------|------------------|------------------|
|  90    |            90    | 2012-13          |
| 150.01 |           150.01 | 2013-14          |
| 270    |           270    | 2014-15          |
| 200    |           200    | 2015-16          |
| 710.01 |           710.01 | Total            |

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