IDLS Scheme, Clarification

No.CLE / ILDP/ IDLS/ 2010-11
Jan 4, 2011

Members of the Council
Dear Members,

Sub: Integrated Development of Leather Sector (IDLS) Scheme – Clarifications on the status of units established upto 3 years prior to Aug 2008 – reg.

As members are aware, the Integrated Development of Leather Sector (IDLS) Scheme is an investment grant scheme approved for the 10th Plan 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 IDLS scheme is continuing in the XI plan and the new scheme was effective from 29th Aug 2008. Apart from the existing units, the new units established are also eligible for assistance under the scheme guidelines for Eleventh Plan, whereas previously under the Tenth Plan, only existing units are allowed for assistance (existing unit definition: at least 3 years existence, and 2 years cash profit).

As such, the units established up to 3 years prior to 29th Aug 2008 (say in 2006, 2007, before Aug 2008 etc) are neither falling under the definition of existing units nor considered new units and hence are not found eligible for grant under IDLS Scheme. In view of such difficulties, the affected members have represented to the Council with a request to take up the matter with DIPP. Accordingly as the Facilitating Agency, the Council examined the issue, and approached the DIPP requesting for positive consideration of the matter, as the basic objective of the Scheme is to assist the units in its modernization and technological up gradation efforts.

This was taken for discussion in the 20th Meeting of the Steering Committee under ILDP held on 24th Dec 2010. The specific issue was to specify the status of the units which came into existence before 29th Aug 2008 but had not completed 3 years of existence as on date of modernization under the IDLS Scheme, and whether these units would get assistance as new units. After detailed discussions, the Committee clarified that such units would be treated as new units as on date (of modernization) for assistance under IDLS Scheme for Eleventh Plan.

The above are for your information, and members may file their applications for assistance under the IDLS Scheme with the nearest Regional / Extension Offices of CLE.

With warm regards,
Yours sincerely,

Ali Ahmed Khan
Executive Director
Council for Leather Exports