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

Members of the Council

Dear Members,

Sub: Integrated Development of Leather Sector (IDLS) Scheme – One year gap recently introduced between the two Sanction Letters – Modifications thereof – reg.

Member’s attention is invited to the Council’s Circular of even number dated Sept 7, 2010 wherein the Council has informed about the gap of one year between the two Sanction Letters introduced consequent to the decision taken in the 19th meeting of the Steering Committee under ILDP held on 26th August 2010.

Since the above stipulation is affecting the industry as the units have to wait for one year to file add-on application, the Council has made series of representations to the DIPP highlighting the adverse impact of the restriction imposed on filing of add-on applications and its implications on the modernization and technological up gradation efforts of the leather industry. In fact, this issue was deliberated in detail in the 133rd meeting of the Committee of Administration of the Council held on 28th Sept 2010. The Council again submitted a representation dated Dec 22, 2010 to the DIPP and requested the DIPP withdraw the gap of one year between the two Sanction Letters since imposition of one year gap results in blockage of the capital to the extent of grant, for recycle back into the business. Having made the investment, the applicant had to wait for a long period to get the investment grant and therefore, the Council has requested the DIPP for restoring the earlier status namely consider add-on applications without any time frame of one year.

This was taken up in the 20th Meeting of the Steering Committee under ILDP held on 24th Dec 2010 and the following was decided:

1. Applicants may file their add-on applications below the investment grant of Rs.25 Lakhs, irrespective of the time gap between the applications.

2. The agencies will accept and process the add-on applications till the amount of assistance to one particular unit for one particular product line reach Rs.25 Lakhs in a year. Thereafter, gap of one year will be followed for that unit.

Members may kindly take note of the above and accordingly file their add-on applications with their nearest Regional / Extension offices of the CLE.

Members are advised to fully utilize the window of the CLE to redress their grievances or any problems that they may face regarding Technical Appraisal, Financial Appraisal, formalities of SIDBI etc in availing of grant under IDLS Scheme.

With warm regards,
Yours sincerely,

Ali Ahmed Khan
Executive Director
Council for Leather Exports