World-class Mega Leather Clusters to push production, exports
The Dollar Business Bureau In order to give a boost to the leather industry, the government has decided to provide up to 50% assistance to private players for the setting up of mega leather clusters across the country. The move is aimed at providing the leather industry with world-class facilities to ensure that those engaged in the trade get better access to the domestic as well as international markets. The scheme of Mega Leather Cluster (MLC), being implemented by the Department of Industrial Policy and Promotion, aims at setting up of mega leather clusters in the country during 12th five-year Plan (2012-17), a government statement said. “The major objective of developing Mega Leather Clusters is to create world-class infrastructure and to integrate the production chain in a manner that caters to the business needs of the leather industry so as to cater to the domestic market and exports,” the Minister of State, Commerce and Industry, Nirmala Sitharaman, said in a written reply in the Lok Sabha on Friday. The minimum area required for an MLC is 25 acres to be set up without tanneries and 40 acres with tanneries. The government will provide up to 50% of the project cost excluding the cost of land with maximum assistance being limited to Rs.125 crore. For a cluster spread over 25-60 acres, the government assistance will be up to Rs 50 core, while the fund can be increased to Rs 70 crore for a facility spread over 61-100 acres. An MLC on more than 100 acres can avail up to Rs 105 crore and those set up on more than 150 acres of area can get Rs 125 crore from the government. The scheme is not location-specific. It is demand driven and depends upon the project proposal received in this regard, the minister said.
This article was published on April 27, 2015 – 9:11 am IST.