No.CLE / ILDP / IDLS / 2010-11
3rd March 2011
Members of the Council ,
Sub: Integrated Development of Leather Sector (IDLS) Scheme – Investment proposal of units – Assessment of extent of investment proposed by industry
As you are aware, the IDLS Scheme is an investment grant scheme approved for the 10th Plan period 2002-07 for technology up gradation, modernization, capacity creation in all segments of the Leather Industry. The scheme was implemented w.e.f. Nov 3, 2005. The scheme provided financial assistance of 30% of the cost of plant and machinery for SSI units and 20% of the cost of the plant and machinery for Non-SSI units, subject to a ceiling of Rs.50 lakh in case of both SSI and Non-SSI units. IDLS scheme is continuing in the XI plan period 2007-12 with certain modifications, and the scheme was effective from 29th Aug 2008. The assistance has been increased from the earlier ceiling of Rs.50 Lakh (30% for SSI and 20% for Non-SSI units) to Rs.2 Crore @20% to all units above the assistance of Rs.50 Lakh. The CLE is the Facilitating Agency to provide guidance and assistance to the members, receive application forms and undertake preliminary scrutiny, and coordinate with industry members and various agencies CLRI, FDDI, SIDBI, DIPP etc.
Of late, there were some delay in release of funds by the DIPP to the SIDBI which has caused non-disbursment or delay in disbursement of grant amounts to the Units and this situation has been prevalent for the past quite sometime. The Council has been vigorously following up with the senior officials of the DIPP on several occasions urging them to release the funds to the SIDBI which would enable the SIDBI to disburse the sanctioned grant amounts.
The subject of IDLS Scheme was discussed in the 135th meeting of Committee of Administration (COA) held on 31st Jan 2011, and it was decided that the Council has to approach the Govt for additional funding support for the IDLS Scheme. It was further decided that the Council will make a thorough assessment of the total cost of modernization the industry is proposing to undertake and intend to apply for the IDLS Scheme before the end of XI Plan period i.e., March 2012. Based on the response, the Council will further fine tune these estimated project investments with the CLRI and FDDI, and will submit a representation to the DIPP to enhance the fund allocation for the IDLS Scheme for the current XI Plan period.
In this background, we request you to kindly fill up the enclosed ‘Expression of Interest’ as per the notes mentioned in the EOI Form. The filled-up ‘Expression of Interest’ form may be sent to the Council on or before 14th March 2011.
Members may kindly do the needful and submit the EOI form before the deadline. This will enable the Council to compile the total modernization cost proposed by the industry, and submit the representation to the DIPP seeking for allocation of funds to the IDLS Scheme.
With warm regards,
Ali Ahmed Khan
Encl: Expression of Interest Form