No. CLE /ILDP/ 2008-09
Jan 16, 2009

To
Members of the Council
Industry Associations in all the Regions

Dear Sir(s),

Sub:PROJECT PROPOSALS for consideration under (1) HRD Scheme (2) Support to Rural Artisans Scheme of ILDP – Implemented by DIPP during XI Plan 2007-2012

You may be aware that vide Notification No.5/17/2007 dated 29th August 2008, the Department of Industrial Policy & Promotion (DIPP) has notified the Indian Leather Development Programme (ILDP) for the overall industrial growth of leather sector for implementation during the 11th Five Year Plan period 2007-2012. The Council has dissemination this information vide Circular No.14/005/ILDP/2008-09 dated Sept 22, 2008 to all members of the Council. The Notification is also hosted in the CLE website www.leatherindia.org under ILDP-XI Plan in the homepage itself.

Besides several objectives, the ILDP has also given thrust to developing and upgrading the skills of the manpower for employment in leather industry and also empower the rural artisans in the country. Towards this, two specific sub-schemes notified under ILDP are:

1.Placement Linked Skill Development / Skill Up gradation Projects under HRD Scheme
2.Support to Rural Artisans Scheme

The Council has received a copy of the Guidelines of these two Schemes from the DIPP. The Scheme Guidelines are attached herewith for your perusal.The Guidelines are also been hosted in CLE website under ILDP-XI Plan in the homepage.

The Scheme details in brief are given below:

1.Placement Linked Skill Development / Skill Up gradation Projects under HRD Scheme

The scheme would address the human resource needs of the industry, and would target the potential workforce in the rural areas and would lay stress on skill development and technical development. The scheme would cover the full range of Training Programmes through Output Linked financial assistance to cover the Primary Training and Secondary Training courses. The Projects could be drawn to train and prepare individuals in the rural areas to be fit to work in medium to large industrial units. Up-gradation of skills of persons already employed in the leather sector besides training for Trainers/ Supervisors would also be eligible under the scheme. The training proposed under the projects would be on PLACEMENT LINKED TRAINING where at least 75%of those trained would be placed in the industry and entrepreneurs have to give commitment letters to that effect.

Any agency in the private or public sector, private corporate entities, NGOs, voluntary organizations, State Government Agencies, Trusts or other entities promoted by the corporate entities, Training Institutions with requisite capacity, performance track record, may prepare a well structured proposal to train and place targeted youth in rural wage employment.

The placement guarantee certificate/commitment letters from Industrial units for providing employment to those trained, is most essential and it should be part of the Project Proposal. The funding under the project will be on PPP basis. The project cost will be met by GOI as per the pattern of assistance specified in the Scheme guideline and balance costs have to be met by the Beneficiaries. The Project Proposals have to be prepared strictly as per the guidelines of the HRD Scheme. Interested Industry Associations, entrepreneurs, NGOs, technical institutions may prepare Project Proposals as per the Proposal Format given in the Annexure A of the Scheme Guidelines.

2.Support for Rural Artisans Scheme

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 projects under the scheme may train the artisans to help them keep pace with the changing fashion trends, and latest technology, and undertake market support activities to benefit the artisans.

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 financial assistance under the scheme would be provided in the form of grant-in-aid to Registered NGOs, Industry Associations, or institutions willing to take up projects in different leather clusters. The broad objective of this component would be to ensure better and higher returns to the artisans.Interested agencies as in the case of HRD Scheme, may prepare Project Proposals strictly as per the scheme guidelines.

Project Proposals may be submitted to the CLE for necessary facilitation and follow up with DIPP:

The Project Proposals under ‘HRD Scheme’ as well as Project Proposals under ‘Support to Rural Artisans’ scheme may please be sent to the CLE. The CLE will follow up and pursue with the DIPP for an early consideration of the proposals.

With warm regards,
Yours sincerely,

Ali Ahmed Khan
Executive Director