IDLS Scheme – Add-on Applications

No. CLE-HO / ILDP / IDLS / 2013-14


12th July, 2013

All Members of the Council

Dear Members,

Sub: IDLS Scheme – Add-on Applications – Utilization Certificate (UC) by the units for the previous grants sanctioned & received – reg.

This is regarding the Integrated Development of Leather Sector (IDLS) Scheme being implemented by the Department of Industrial Policy & Promotion, Ministry of Commerce & Industry, Government of India to assist the manufacturing units for technology up gradation, modernization, capacity creation in all segments for the leather industry. The scheme provides financial assistance @ 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.2 crore and @ 20% to all units above the assistance of Rs.50 Lakh. The CLRI is the PIU for Tanneries, whereas FDDI is the PIU for Leather Products. The SIDBI is the nodal agency for release of assistance to the applicants. The CLE is the ‘Facilitation Agency’ to guide, facilitate and coordinate with the units and the stakeholder agencies at various stages of the processing besides receiving of applications from the units across all the regions in its offices for preliminary scrutiny and thereafter submit to the PIU for technical appraisal and further processing.

The eligible units can submit applications seeking support under IDLS Scheme during the 12th Five Year Plan period 2012-17, for the investments made on or after 01.01.2011. In other words, assistance shall be available only for such projects in which loan has been sanctioned by SIDBI Banks / FIs on or after 01.01.2011. In case of Self Finance cases, assistance shall be available only for such projects where the order for the purchase of machinery has been placed on or after 01.01.2011.

In this background, matters concerning new applications were discussed in the 29th meeting of the Steering Committee held on 28th June 2013 under the chairmanship of Shri Atul Chaturvedi, IAS, Joint Secretary-DIPP. It has been decided in the said meeting that Utilization Certificate (UC) for the previous assistances received by the units must be invariably submitted in respect of all the add-on application cases, as per the prescribed format GFR 19A (Format attached). As such, the Utilization Certificate by the unit confirming receipt of investment grants for the previous assistances sanctioned has been made mandatory enclosure for submission of all add-on applications henceforth.

Accordingly, the units which propose to submit any add-on application(s) are required to furnish the UC as per GFR-19A for the previous assistances sanctioned and receipt of the said amounts from the SIDBI, along with ‘audited Accounts Statements’ of the unit., and all other supporting documents prescribed under IDLS Scheme.

The units which have already submitted any add-on applications in the past (which is currently under processing at PIUs) are also required to furnish the UC. For such cases, the UC should be sent to the PIU concerned under copy to the CLE, duly scanning the UC and sending it by e-mail. Thereafter, hard copy of the UC should be invariably sent to the PIU by post.

The applicants will have the option to submit their fresh as well as add-on applications to CLE (for both Tanneries and Leather Products), or directly to the CLRI (for Tanneries) and FDDI (for Leather Products). The CLE will receive the applications, undertake the preliminary scrutiny and forward the applications to the PIU concerned (CLRI or FDDI as the case may be) for technical appraisal and further processing at their end.

It is requested that all your communications concerning your application till the final receipt of grant, you may invariably mark a copy of the same to the CLE for information and further necessary follow up with the PIUs and stakeholder agencies including for updating the database.

Members may kindly take note and comply with the above stipulation.

With warm regards

Yours sincerely,

R. Ramesh Kumar, IAS

Executive Director