No.CLE/ ILDP / IDLS / 2009-10
April 15, 2009

Members of the Council

Dear Members,

Sub: CLE appointed as Facilitating Agency under Integrated Development of Leather Sector (IDLS) scheme

As members are aware, one of the sub-schemes of the Indian Leather Development Progrmame (ILDP) is IDLS scheme which is being implemented with the objectives of technology up gradation, modernization, capacity creation in all segments of the Leather Industry. Under the IDLS Scheme, financial assistance is provided to the units to the extent of 30% of the cost of plant and machinery for SSI units and 20% for Non-SSI units, subject to a ceiling of Rs.2 Crore @ 20% to all units above the assistance of Rs.50 Lakh. The following two agencies are the Programme Implementation Units for the IDLS Scheme:

• Central Leather Research Institute (CLRI), Chennai – For Tanneries
• Footwear Design & Development Institute (FDDI), Noida – For Leather Products

SIDBI is the nodal agency for release of assistance to the applicants under the Scheme.

The guidelines and procedures of the IDLS scheme and Application Forms are available in the website of CLE www.leatherindia.org and also of CLRI www.clri.org and FDDI www.fddiindia.com

CLE as Facilitation Agency under IDLS Scheme:

Of late, the members of the Council have expressed a view that CLE being the Export Promotion and development agency for leather & leather products should also play a key role in the IDLS Scheme, besides CLRI and FDDI.

In view of the fact that the Council has an all India Presence with network of Regional Offices in all the five regions of the country besides extension office at Agra, a need has been felt that members of the Council should be permitted to submit their applications with any of the nearest offices of the Council as well as seek guidance from CLE in preparation and submission of applications. A need was also felt that effective follow-up should be done by the Council with various agencies involved in the IDLS scheme i.e. CLRI, FDDI, SIDBI etc for quick processing and availment of the financial assistance under the IDLS Scheme.

This matter was taken up for discussion in the 15th meeting of the Steering Committee held under the Chairmanship of Joint Secretary, DIPP on 13th April 2009 in which representatives of all the involved agencies CLRI, FDDI, SIDBI and CLE were present. After detailed and extensive deliberations on the subject matter, it was decided to appoint CLE as the Facilitating Agency for the IDLS scheme.

Formal communication in this regard is awaited from DIPP.

Accordingly, we are pleased to inform our members that the Council would perform the following functions under the IDLS Scheme as a Facilitation Agency:

• Help the industry in filing of applications under the Scheme
• Receive the filled-in applications from all segments of the leather industry
• Assess the primary eligibility criteria in relation to the Scheme guidelines
• Examine the filled up applications, and ensure its correctness or otherwise
• Arrange to obtain the missing information / enclosures from the applicants
• After ensuring correctness, CLE would forward the applications of members with all relevant enclosures to the two PIUs – CLRI or FDDI as the case may be.
• To inform the applicants about the dispatch of their applications to PIUs
• Subsequent follow up, interaction and liaise with the PIUs – CLRI & FDDI in regard to further processing of applications by them.
• Liaising with members, PIUs, SIDBI etc.

The Council’s role as a Facilitating agency will be confined to receipt of applications, and it’s processing and liaising with the applicants to collect all required information, and thereafter forwarding to the two PIUs, CLRI or FDDI as the case may be, for further processing at their end. The Council’s processing of applications will be non-technical in nature, and is basically meant to facilitate the members of the Industry by enabling them to submit the applications with the Council’s offices located in important clusters at various parts of the Country. The two PIUs CLRI and FDDI will carry forward the processing of applications submitted by the Council from the stage of technical assessment, technical viability analysis, putting up and seeking the approval of Steering Committee.

This arrangement of nominating CLE as a Facilitating Agency of the IDLS Scheme will not necessitate any change in the roles and responsibilities of SIDBI, CLRI & FDDI. The SIDBI will continue to assess the financial viability and finally release disbursal of funds to the applicants.

The applicants have the option to submit their applications either to the CLE or directly to the PIUs (CLRI, FDDI) based on their own preference, choice and convenience.

Members may kindly take note of the Council’s appointment as Facilitating Agency for the IDLS scheme, and interact with CLE Offices for any clarifications and guidance in availing the financial assistance under the IDLS scheme. .

Interested members of the Council may kindly submit their applications seeking assistance under IDLS Scheme, to their respective CLE REGIONAL OFFICES along with required enclosures.

Since the CLE has to make background preparations to deal in IDLS Scheme, the CLE Regional Offices will accept applications from members, with effect from 1st May 2009.

A List of CLE Officials who will deal in the IDLS scheme and their Mobile numbers are attached herewith for information of members.

With warm regards,
Yours sincerely,

Sd/-

Ali Ahmed Khan
Executive Director
List of CLE officials