Leather industry to undergo big upgrade, proposals of over Rs 860 crore received

Building yet another new cluster in Maharashtra has been recently given ‘in principle’ approval by the DPIIT. Upgradation projects for 11 common effluent treatment plants (CETPs) in Tamil Nadu have already been approved during FY 2018-19 involving combined total project cost of Rs 506.47 crore.Over 494 proposals for modernisation, technology upgradation and capacity expansion in the leather and leather products manufacturing units have been received with total project investments of `864.40 crore, according to Council for Leather Exports (CLE).Out of this, 166 proposals have already been approved involving total investments of `285.67 crore, said CLE, the notified export promotion organisation for entire leather and leather products industry, under the aegis of Union commerce ministry. Another 83 proposals involving total investments of `137.02 crore, with eligible grant at `35.46 crore, are under final scrutiny and expected to be placed before the competent authority for approval very soon, the apex trade promotion body said.The Department for Promotion of Industry and Internal Trade (DPIIT) had notified the Indian Footwear, Leather & Accessories Development Programme (IFLADP) with an outlay of `2,600 crore during 2017-20. Execution of many of the sub-schemes of IFLADP has progressed considerably and is in full swing with DPIIT putting in an effective mechanism for scrutiny and approval of the proposals.Upgradation projects for 11 common effluent treatment plants (CETPs) in Tamil Nadu have already been approved during FY 2018-19 involving combined total project cost of Rs 506.47 crore. The execution of these sanctioned projects are in full swing during the current fiscal. The proposals for upgradation of CETP in Jalandhar and Kolkata have already completed the appraisal process and are currently in final stages of scrutiny and expected to be placed before competent authority very soon, CLE stated.Establishment of new greenfield mega cluster in Kothapatnam, Andhra Pradesh is currently under implementation by the state government promoted SPV in an area of 537 acres. Setting up of a new cluster inside the Calcutta Leather Complex has recently been given final approval by the DPIIT. This brownfield project would be spread over an area of 108.07 acres inside the Calcutta Leather Complex, Bantala. Kolkata Metropolitan Development Authority (KMDA) is the SPV for this project. Building yet another new cluster in Maharashtra has been recently given ‘in principle’ approval by the DPIIT. The new cluster is proposed in Ratnagiri district, which would be implemented by LIDCOM, a public sector undertaking of the state government, CLE said.In order to enhance production levels, there was a need for not only upgrading the infrastructure in the existing leather, leather products and footwear clusters but also to create new clusters with plug-and-play model of factories.“We have requested the government to provide such plug-and-play model of factories, so as to attract domestic and foreign investments, considering the huge cost of land for setting-up new projects,” CLE stated.Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

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