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Outlay approved by the DIPP for Leather Sector under the Indian Leather Development Programme (ILDP) for implementation during 11th Five Year Plan 2007-2012

Sl No.SchemesCentral Allocation
(Rs. in Crore)
i)Integrated Development of Leather Sector (IDLS)

IDLS scheme is an investment grant scheme for technology upgradation, modernization, capacity creation in all segments of the Leather Industry
ii)Leather Tanning  Complex at Nellore29
iii)Establishment of Branch of FDDI at Fursatganj 7.17
iv)Footwear Complex, Chennai  3
v)Saddlery Development 10
vi)Support for rural artisans40
vii)Human Resource Development 60
viii)Upgradation of facilities of FDDI and Establishment of other such institutes and centres 300.07
ix) Upgradation / installation of infrastructure for  environmental protection in the Leather sector 200
x) Mission Mode

Investment promotion activities

Research, Evaluation & Consultancy Services
Total Outlay912.67


The ILDP for the 11th Five Year Plan comprise of the following components:

Integrated Development of Leather Sector (IDLS)- Outlay Rs.253.43 Crore

IDLS scheme is a capital subsidy 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 scheme provided 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. The IDLS scheme is continuing in the XI plan period with certain modifications. The scope of the scheme is enhanced to include new units. The financial assistance has been increased from the present 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 disbursement above Rs.25 lakh would be made in 4 equally annual installments.

Leather Tanning Complex, Nellore – Outlay Rs.29 Crore

The scheme aims at supporting the initiatives of State Government in the establishment of a state-of-the-art Leather Complex for tanneries. The location for the complex is Nellore, Andhra Pradesh. The project was proposed to be implemented during the 10th Five Year plan. However, the project could not take off for want of decision from the Government of Andhra Pradesh. This project aims to increase the capacity of the tanning sector. This project is proposed to be implemented during the 11th Plan. The outlay of Rs.29 Crore is approved during XI plan as assistance to develop the infrastructure of the Tanning Park. Leather Development Corporation of Andhra Pradesh (LIDCAP) in association with Government of Andhra Pradesh is the implementation agency for this project. Government of Andhra Pradesh has transferred the required land to LIDCAP.

Establishment of branch of FDDI at Fursatganj – Outlay Rs.7.17 Crore

The Institute aims to develop human resources for footwear industry by imparting knowledge and skill in accordance to the requirement of the industry. The Institute would be a branch of the Footwear Design and Development Institute, noida, and would be equipped with facilities of latest technologies to provide training of international standards with latest technology. The DIPP assistance to the project is Rs.13.53 Crore out of which Rs.6.36 Crore was released during Xth Plan. The balance Rs.7.17 Crore has been released during 2007-08.

FDDI- Fursatganj would be in a position to introduce six new long term training programmes for training 600-700 students as Footwear Technologists, Designers, Footwear Production Managers and Supervisors. In addition, short-term courses for operator/machine technicians would be conducted in different footwear manufacturing operatiosn to train 300 persons per year. The Institute spread over 10 acres, would have hostel facilities, computer & library centre and staff quarters.

Footwear Complex, Chennai – Outlay Rs.3 Crore

This is an ongoing scheme of the 10th Plan. The scheme aims to build a Footwear Complex and provide infrastructure facilities for housing large footwear manufacturing units. The complex is being established at SIPCOT Industrial Park near Chennai in a total area of 153.65 acres, and there would be 20-22 units in the Complex. Infrastructure development towards design and testing centers, display centre, warehousing, common power plants etc would be provided. State Industries Promotion Corporation of Tamil Nadu Ltd (SIPCOT) is the implementation agency. Total Central Assistance is Rs.14 Crore, out of which Rs.11 Crore was already released during Xth Plan. The balance Rs.3 Crore would be released during the XIth Plan.

Saddlery Development – Outlay Rs.10 Crore

Harness & Saddlery comprise a wide range of products. The industry has identified upgradation and development of skilled manpower, standardization and development of components accessories and tools, development of low cost indigenous machinery, and improvement in production techniques and processes as major areas of concern. IIT – Kanpur was the implementing agency for saddlery development during the Xth Plan. International Institute of Saddlery Technology and Export Management (Kanpur), a SPV constituted under the overall guidance and superintendence of IIT, Kanpur would continue to provide skilled human resources to meet the need of saddlery industry, and would function as an R & D base for the industry. In the XIth Plan, it is proposed to up-scale skill upgradation programmes in view of the demand of the sector and conducting various long term and short term duration courses in saddlery segment.

Support for rural Artisans – Outlay Rs.40 crore

This scheme would provide necessary design and product development support to the artisans and also market linkages for the better positioning of the ethnic products to ensure better return to the artisans. The ethnic clusters and rural footwear producers need support for improvising their designs as per the changing trends and fashion, and also marketing support.

The aim of this scheme is to promote the clusters at various forums as they are an integral part of rural Indian economy and have potential for generating local employment and export. The artisan clusters (both urban and rural) would be supported for enhancing their designs as per the changing trends and fashion, corpus of revolving funds for obtaining bulk raw material, grant based livelihood support, marketing support / linkages and also bank linkages. The broad objective of this component would be to ensure better and higher returns to the artisans.

Human Resource Development – Outlay Rs.60 Crore

HRD Mission would target the potential work force in the rural areas and would lay stress on skill development and technical development. The scheme would address the human resource needs of the industry. Scheme would cover the full range of training programme through output linked financial assistance to cover the Primary Training and Secondary Training courses. The project would train and prepare individuals in the rural areas to be fit to work in medium to large industrial units that are likely to be set up. Upgradation of skills of persons already employed in the sector besides training for trainers/ supervisors would also be undertaken. The training proposed under the scheme would be output linked where at least 75% of those trained would be placed in the industry.

Upgradation of facilities of FDDI and establishment of other such institutes and centers – Outlay Rs.300.07 Crore

As of now about 3800 people are trained every year in leather and leather products sector. Against this supply, the demand of the industry is around 100,000 skilled persons every year for the next 5 years. In order to increase the uptake of the student in each category and to train them in the latest technology, upgradation of the facilities in the existing units has become absolutely essential.

Footwear Design & Development Institute (FDDI), Noida is a premier institute providing training, consultancy services in the footwear and leather industry. It is therefore proposed that at least 3 campuses of FDDI would be established in Tamil Nadu, West Bengal and Haryana, during the 11th Plan at a cost of Rs.96.69 crore each. Besides, Rs.10 crore would be provided for upgradation of existing FDDI campus at Noida. The assistance would be in the form of one time grant for creation of capital assets and permanent infrastructure and no recurring cost would be provided.

Up gradation / installation of infrastructure for environmental protection in the Leather sector – Outlay Rs.200 Crore

Leather Industry and tanning activity in particular, all over the world, is linked to environmental concerns. The environmental issues are slowing gaining ground and measures would need to be put in place for industries to cope with the stringent norm. An allocation of Rs.200 Crores has been made in the 11th Plan to address these concerns. Projects for meeting environmental concerns would be funded with 50% grant from Central Government, with the remaining fund coming from State Government 15% and from the Industry 35%. The entire operation and maintenance costs would be borne by the industry.

Mission Mode Scheme – Outlay Rs.10 Corre

(a) Investment Promotion activities

This scheme envisages attracting investment into the sector by undertaking investment promotion activities. The Road Shows will be organized in the foreign markets with the basic objective to create awareness about the India’s manufacturing capabilities and growth potential and motivate the foreign entrepreneurs to invest in India either through foreign direct investments or through joint venture and technical collaborations with leather sector entrepreneurs. International leather Experts / Resource Persons will be invited to visit India to India, to make presentations on subject of their specializations to Indian entrepreneurs. Journalists / Opinion makers from international Trade Magazines will be invited during Delhi International Leather Fair (DILF), India International Leather Fair (IILF), International Leather Goods Fair (ILGF) for adequate media coverage of the leather industry in their magazines abroad.

(b) Research, Evaluation and Consultancy

Besides, provision has been made for research, programme support, survey and concurrent evaluation etc in the field of leather. Besides, provision has also been made for cost on account of advisory and consultancy services in respect of various projects under ILDP being implemented during XI Plan.