No.CLE /ILDP / IDLS / 2010-11
September 7, 2010

To: All Members of the Council

Dear Members,

Sub: Integrated Development of Leather Sector (IDLS) Scheme

As you are aware, the IDLS Scheme is an investment grant scheme 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 provides 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 with certain modifications w.e.f. 29th Aug 2008. The scope of the scheme is enhanced to include new units. The financial assistance has been increased from the 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 Scheme Guidelines may be referred from the CLE website www.leatherindia.org under IDLS Scheme in the homepage.

The CLE is the Facilitating Agency for the IDLS scheme to coordinate with industry members and various agencies:

• CLRI
• FDDI
• SIDBI and DIPP

The CLE offices in :

• Chennai
• New Delhi
• Kanpur
• Kolkata
• Mumbai
• Agra and Jalandhar

are receiving applications from members and providing all required clarifications and guidance.

Vide Para 3.12 of the scheme guidelines, it was mentioned that modernization will be permitted generally with a time interval of at least 3 months between applications and on the successful completion of the earlier modules of modernization. However, SSI units were exempted from this condition.

In this background, in the 19th meeting of the Steering Committee held under the Chairmanship of Shri Chaitanya Prasad, Joint Secretary-DIPP on 26th August 2010, the present three months time gap between the two applications were discussed and it was felt that this time gap was very short. Therefore, it was decided that add-on applications will be considered only after one year from the date of issue of the last Sanction Letter to the particular applicant. Accordingly, the applications will be considered for investment grant subject to satisfying the condition of gap of one year from the issue of last Sanction Letter.

The above are for information. Formal notification will be issued by DIPP in due course.

With warm regards,
Yours sincerely,

Ali Ahmed Khan
Executive Director