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Indian Leather Development Programme

Brief about the Scheme

Indian Leather Development Programme (ILDP) aims at augmenting raw material base through modernization and technology upgradation of leather units, addressing environmental concerns, human resource development, supporting traditional leather artisans, addressing infrastructure constraints and establishing institutional facilities. Total expenditure in 12th Plan period (2012 -2017) is Rs. 1145.01 crore for implementation of ILDP for implementation of the six sub-schemes i.e. Human resource Development (HRD), Integrated Development of Leather Sector (IDLS), Support to Artisan (STA), Mega Leather Cluster (MLC), Establishment of Institutional Facilities and Leather Technology, Innovation & Environmental Issues. HRD mission targets potential work force for leather sector and lays stress on skill development. Under Integrated Development of Leather Sector (IDLS) sub-scheme, assistance is provided for technology up-gradation/modernization and/or expansion and setting up of a new unit in the leather sector. Support to Artisan (STA) sub-scheme provides support to artisan clusters all over India for enhancing their design and product development, capacity building, marketing support, establishing common facility center and marketing support/linkage. The objective of Mega Leather Cluster (MLC) sub-scheme is to create mega clusters having state of the art infrastructure, latest technology and integrated production chain as per business needs of the leather industry. Establishment of Institutional Facilities sub-scheme aims at providing institutional facilities by way of establishing new campuses of Footwear Design and Development Institute (FDDI) to meet the growing demand of the leather industry. Leather Technology, Innovation & Environmental isues sub-scheme provides financial support to Leather Cluster to meet the prescribed pollution control discharge norms and environmental issues.

  1. Detailed Write-up

    (i) Scheme Objectives

    • Human Resource Development (HRD) - Imparting market based skills on shop floor operations to youth through a demand driven Skill-Development Program and make them employable in the leather industry and placing the successful trainees in leather units. Upgrade the skills of the existing workforce which would lead to improvement in production as well as quality. Up grading the skills of the trainers/experts of technical institution/NGOs involved in the project and expose them to the best practices. Spread and sustain a technology culture in the Indian leather sector.

    • Integrated Development of Leather Sector (IDLS) - This sub-scheme aims at enabling tanneries, footwear, footwear components, leather goods and accessories, leather garments, harness & saddlery manufacturing units to upgrade themselves leading to productive gains, right-sizing of capacity, cost cutting, design and development including simultaneously encouraging entrepreneurs to diversify and set up new units in the areas as specified.

    • Support to Artisan - Provide livelihood support to the artisan involved in traditional artisan activity involving leather. Increase the income of such artisans. Introducing design development and product diversification to make their products more competitive qualitatively and cost-wise in the domestic and international market. Capacity building and training of such artisans to help them keep pace with the changing fashion trend and latest technology. Providing marketing support to these artisans. Encouraging formation of Self Help Group (SHGs). Creating awareness in artisan about micro-finance system, saving schemes, credit facilities from banking institutions etc.

    • Mega Leather Cluster - 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. In brief, these mega clusters will assist the entrepreneurs to set up world-class units with modern infrastructure, latest technology, and adequate training and Human Resource Development (HRD) inputs. The development of Mega Leather Clusters would help in creating additional employment opportunities, particularly for the weaker sections of society.

    • Establishment of Institutional Facilities - This sub-scheme aims at providing infrastructure by way of establishing two new campuses of FDDI to meet the growing demand of the leather industry for footwear technologists, designers, supervisors and mechanics. It proposed to set up two new branches of FDDI in Punjab and Gujarat. The two branches would be self-sustainable.

    • Leather Technology, Innovation & Environmental Issues – There are four components of this sub-scheme i.e. Technology Bench Marking and Environmental Management for Leather Sector, Common Effluent Treatment Plants (CETPs), Solid Waste Management and Environment Related Workshops. The objective of ‘Technology Bench Marking and Environmental Management for Leather Sector’ component of the scheme is to enhance the sustainability of Indian Leather Units by providing financial and technical support for assessing the process technology adopted at present and re-engineer them in order to add economic and environment benefits. The ‘Common Effluent Treatment Plants (CETPs)’ component provides financial support to Leather Cluster to meet the prescribed pollution control discharge norms. This would cover establishment / expansion / up gradation of CETPs, developing Secure Land Fills and any other techniques for hazardous waste management. The aim of ‘Solid Waste Management’ component of this scheme is to involve the industry in the utilization of solid waste from tanneries for the production of valuable products that could be utilized locally. The ‘Environment Related Workshops’ component aims to organize the workshops to educate and train the tanners and tannery workers on housekeeping, chemical storage and handling, safety and health and enhancing productivity and quality.

    (ii) Coverage & Eligibility

    • Human Resource Development (HRD) – This scheme covers full range of training programmes to cover all kinds of training courses i.e. (i) Primary: It would cover the training of the persons not already employed in the sector at entry level in shop-floor operations. The emphasis would be on placement linked training where those trained would be placed in the industry and a certificate to that effect obtained. (ii) Secondary: It would cover skill up gradation training of those already involved in shop-floor operations in both organized and unorganized sector of the leather industry and would also include on- site training. It would target rural/urban youth irrespective of their educational background. (iii) Training of Trainers: This would be undertaken to create and sustain a technology culture in Indian Leather sector and to enhance competitiveness through upgrading the skills of trainers/experts of technical institution/NGOs involved in the project. The intent is to expose those involved in training of workers to the best practices. The task of identification/selection of trainees will be handled by the Implementing agency with the help of the local administration. Selection process in the programme should be demand driven. While selecting the trainees, preference should be given to SC/ST/Women/Minorities/Weaker Sections and people below the poverty line.

    • Integrated Development of Leather Sector (IDLS) – All existing units in the Leather and Leather Products industry including tanneries, leather goods, saddlery, leather footwear and footwear component sector having cash profits for 2 years, undertaking viable and bankable programmes on technology up-gradation on or after 1st January, 2011 are eligible for assistance. With a view to attract investment into the sector, the assistance for establishment of new units would also be provided. Assistance to units would be considered only if the project is appraised to be bankable and viable by bank providing loan in case of loan cases and by bank in which the unit has a working capital loan account in case of self- finance case. Modernization programmes of the units funded by nationalized bank as well as those programmes undertaken by existing production units from their own resources will be eligible for assistance.

    • Support to Artisan – The clusters of artisans involving leather needing support to ensure survival of the traditional art are identified on the basis of a base line survey of the clusters giving details of number of artisans per clusters, their problems and areas that require support. The detailed screening criteria for eligibility of implementing agencies, identification of artisan clusters etc. would be developed by Steering Committee to be chaired by Joint Secretary in-charge of Leather Division in the Department. The concerned stakeholders would be represented in this Steering Committee which would be notified by the Department. The Department would appraise different projects received from various NGOs or Societies or Associations/institutions involved in the trade on the basis of the guidelines.

    • Mega Leather Cluster – It is proposed to develop Mega Leather Clusters in the States having large concentration of leather units as also States having potential for growth of the leather sector in view of the labour advantage and raw material availability. The scheme will be demand driven and the exact locations will be identified on receipt of DPRs from the Industry with diagnostic study along with availability of backward and forward linkages on those locations. Such clusters will have world-class infrastructure and good connectivity with the Ports. The maximum timeframe for complete establishment of each Mega Leather Cluster shall be 5 years. The selection of the Mega Leather Cluster should be done based on outcomes proposed and the proposal with the best outcome should be approved.

    • Establishment of Institutional Facilities – It proposed to set up two new branches of Footwear Design and Development Institute (FDDI) in Punjab and Gujarat.

    • Leather Technology, Innovation & Environmental Issues – Under ‘Technology Bench Marking and Environmental Management’ component of the scheme, technological and financial support shall be provided to Leather units for establishing and operating the systems connected to pollution reduction and environmental protection based on specific recommendations made by CLRI and FDDI on each proposal regarding eligibility of Leather Units and technology. The benefits under Common Effluent Treatment Plants (CETPs) component of the scheme would be available to a group of entrepreneurs that are engaged in leather business and intent to set up/upgrade the infrastructure for environment protection. Under ‘Solid Waste Management’ component, the pilot plants shall be established by Central Leather Research Institute (CLRI) with 100% assistance for each pilot plant. Under ‘Environment Related Workshops’ component of the scheme, workshops and training programs will be conducted by Central Leather Research Institute (CLRI).

    (iii) Budget Availability/Utilization since last five years -

    (Rs. in Crore)

    Year

    Plan Allocation

    Plan Expenditure

    Non-plan Allocation

    Non-Plan Expenditure

    2012-13

    90

    90

    -

    -

    2013-14

    150.01

    150.01

    -

    -

    2014-15

    270

    270

    -

    -

    2015-16

    235

    235

    -

    -

    2016-17

    400

    400

    -

    -

    Year 2016-17

    (Rs. in Crore)

    Year

    Plan Allocation

    Plan Expenditure

    Non-plan Allocation

    Non-Plan Expenditure

    Q1

    400

    200.01

    -

    -

    Q2

    57.20

    -

    -

    Q3

    30.00

    -

    -

    Q4

    112.79

    -

    -

    (iv) Physical progress against milestones till the end of previous year (i.e. cumulative till 2015-16) and during the year 2016-17

    • Human Resource Development (HRD) – The Physical Progress of Placement Linked Skill Development Training Programme and Skill Up-gradation Training Programme under HRD scheme of ILDP during 12th Plan period is as given below –

  2. Placement Linked Skill Development Programme

    Year

    Target

    Actual

    2012-13

    27560

    27560

    2013-14

    63050

    63050

    2014-15

    1,38,000

    138608

    2015-16

    1,44,000

    144093

    2016-17*

    1,44,000

    117499

    *As per status upto January 2017

     

    Skill Up-gradation Training Programme

    Year

    Target

    Actual

    2014-15

    6000

    6000

    2015-16

    -

    -

    2016-17*

    14,000

    14,000

    Total

    20,000

    20,000

  • Integrated Development of Leather Sector (IDLS) – Assistance provided to units under IDLS sub-scheme of ILDP during 12th Five Year Plan is as given under –

(Rs. in Crore)

Year

No. of Units

Funds Released

2012-13

311

35.45

2013-14

303

35.73

2014-15

193

39.90

2015-16

-

-

2016-17

211

61.48

Total

1018

172.56

  • Support to Artisan – The physical progress of Support to Artisan scheme under ILDP during 12th Plan period is as given below -

Year

Cluster

Target

Achievement

2012-13 to

2014-15

Alwar / Jaipur

5000

5101

Jodhpur

5000

5041

Punjab

5000

5095

Rae Bareli

5000

5029

West Bengal

5000

5912

Maharashtra

5000

5500

 

Total

30,000

31,678

  • Establishment of Institutional Facilities – The physical progress of Establishment of Institutional Facilities scheme under ILDP during 12th Plan period is as given below -

(Rs. in Crore)

S. No.

Project

Project Cost

Funds Released

Progress/Status

1.

Establishment of Footwear Design and Development Institute (FDDI) Branch – Ankleshwar Gujrat

100

100

Construction work completed, ready for inauguration

2.

Establishment of Footwear Design and Development Institute (FDDI) Branch – Banur, Punjab

100

100

Construction work in final stages

  • Leather Technology, Innovation & Environmental Issues – The physical progress of Leather Technology, Innovation & Environmental Issues scheme under ILDP during 12th Plan period is as given below -

(Rs. in Crore)

S. No.

Project

Assistance Provided

Progress/Status

1.

Assistance for up-gradation/installation of Common Effluent Treatment Plants (CETP) at Dindigul, Tamil Nadu

12.53

Project completed

2.

Assistance for up-gradation/installation of Common Effluent Treatment Plants (CETP) at Ranipet, Tamil Nadu

2.26

Project completed

(v) Salient Features in Bullet form

  • Human Resource Development (HRD)

  • Output linked financial assistance by providing placement linked skill development training (PLSDP) to unemployed youth (At least 75% of trained persons are placed in the industry);

  • Up gradation of skills of persons already employed in the sector for improvement in production as well as quality, besides training for trainers/supervisors.

  • Integrated Development of Leather Sector (IDLS)

  • Financial assistance for technology up-gradation/modernization and/or expansion and setting up of a new unit in the leather sector;

  • Investment grant to the extent of 30% of cost of new plant and machinery for micro and small enterprises and 20% of cost of new plant and machinery for other units subject to a ceiling of Rs. 2 crore for each product line.

  • Support to Artisan

  • Promotion and support of leather artisan clusters in the areas of design and product development, capacity building, establishing common facility center, marketing support/linkage etc.

  • Mega Leather Cluster

  • Setting up of Mega Leather Clusters catering to the business needs of the leather industry so as to cater to the domestic market and exports.

  • Establishment of Institutional Facilities

  • Establishment of new campuses of Footwear Design and Development Institute (FDDI) to meet the growing demand of the leather industry for footwear technologies, designers, supervisors and mechanics.

  • Leather Technology, Innovation & Environmental Issues

  • Establishment/ expansion/ up gradation of CETPs;

  • Technology benchmarking for implementing cleaner technologies for environment management;

  • Utilization of solid waste from tanneries; and

  • Conducting workshops to educate and train the tanners and tannery workers.
     

(vi) Implementing Agency

  • Human Resource Development (HRD)

  1. Footwear Design and Development Institute (FDDI) – Placement Linked Skill Development Training;

  2. Government College of Engineering and Leather Technology (GCELT), Kolkata – Skill Up-gradation Training

  • Integrated Development of Leather Sector (IDLS)

  1. Footwear Design and Development Institute (FDDI);

  2. Central Leather Research Institute (CLRI)

  • Support to Artisan – Footwear Design and Development Institute (FDDI)

  • Mega Leather Cluster – M/s Krishnapatnam International Leather Complex Pvt. Ltd. (KPILC), Andhra Pradesh

  • Establishment of Institutional Facilities – Footwear Design and Development Institute (FDDI)

  • Leather Technology, Innovation & Environmental Issues Central Leather Research Institute

(vii) Monitoring and Review Mechanism

  • Human Resource Development (HRD) National Monitoring Unit (NMU) would be designated for the programmes with the approval of Empowered Committee under this scheme. NMU would be responsible for periodic monitoring and assessment of the training conducted by the implementing agency every year. The Implementing Agencies (IAs) would be responsible to provide the details of training to the NMU. The IAs would also provide the employer’s appointment letter to the NMU and the DIPP to convey information regarding the placement of trainees. The assessments report would be submitted by NMU to DIPP and to the IA. The IA, in consultation with NMU, would provide a completion certificate to the trainees. An appropriate amount as approved by Empowered Committee would be paid to NMU as monitoring charges.

  • Integrated Development of Leather Sector (IDLS) – The Steering Committee shall have mandate to ensure effective implementation of the scheme, its scope would be to lay down procedures for implementation of the scheme, decide list of plant and machineries and normative prices for standard plant and machineries required for the modernization programme, accord sanction of financial assistance from Government, monitor and follow up disbursal of financial assistance from Government to the industrial units. The Project Implementing Units (PIUs) i.e. Footwear Design and Development Institute (FDDI) and Central Leather Research Institute (CLRI) would also be responsible for ensuring setting up of projects sanctioned by the Steering Committee through an active interface with nationalized banks, leather units and Government. The PIUs would also visit the unit for verifying the installation as per amount released to each unit by nationalized banks, and submit report to DIPP.

  • Support to Artisan National Monitoring Unit (NMU) would be designated with the approval of Empowered Committee to review the progress of the projects with all the implementing agencies and to carry out the mid- term and terminal evaluation. The NMU would submit the assessment report to DIPP and to the IA. The DIPP would monitor the overall implementation of the sub-scheme. The decision of the DIPP would be final in case of any dispute between NMU and the IA. The NMU would furnish the impact assessment study of the project before release of the final installment for the projects. NMU would be paid an appropriate amount as monitoring charges as approved by Empowered Committee.

  • Mega Leather Cluster – The monitoring of the implementation of the Mega Leather Cluster scheme would be done by Project Management Consultant (PMC) which would assist the Department in identifying the locations for setting up the MLCs based on a scientific assessment of the demand and potential of the area; facilitating formation of SPV at each project level with the participation of local industry; Technical & Financial appraisal of the proposal/DPR; setting milestones for monitoring the project at the time of approval of the project itself; devising suitable monitoring and evaluation mechanism for the projects under the scheme; periodical monitoring of the progress of the projects; providing other need based advisory services to the Government in effective implementation of the scheme and ensuring timely completion of project(s) as determined by the department.

  • Establishment of Institutional Facilities The scheme would be implemented through Footwear Design and Development Institute (FDDI), Noida, an autonomous society working under administrative control of Department of Commerce, Ministry of Commerce & Industry, Govt. of India. After the approval of the scheme by the Empowered Committee depending upon project cost of setting up of FDDI branches, fund would be released to the implementing agency. FDDI shall hire suitable technical consultants with requisite experience for tendering, evaluation and supervision of the construction work. FDDI would submit the report on the progress of the scheme quarterly. Steering Committee to be notified by the Department would monitor the progress of the scheme.

  • Leather Technology, Innovation & Environmental Issues The Department would engage a professional agency or an expert in the field as Project Monitoring Consultant (PMC) for monitoring and concurrent evaluation, etc. The PMC would be appointed by the Steering Committee. The PMC would be responsible for carrying out mid-term and terminal evaluation of each project sanctioned under this scheme.

(viii) Findings of Evaluation, if any – The evaluation of scheme ‘Indian Leather Development Programme’ is being carried out by National Productivity Council (NPC).

2. Scheme Guidelines (As amended upto 31.12.2016): Guidelines for Human Resource Development Sub-scheme of Indian Leather Development Programme

3. Circulars/Notifications/orders with file name indicating subject line in a self-explanatory manner: Nil


more...

 

  • Notification - Constitution of 'Committee for targeting Investment in Leather Section' (62.42 KB)
  • Advertisement - Invitation of applications for Establishing Mega Leather Cluster under Sub-Scheme "Mega Leather Cluster" of ILDP (520.86 KB)
  • Notification of Empowered Committee and Steering Committee under Indian Leather Development Programme (ILDP) - 12th Five Year Pl (2.85 MB)
  • Guidelines for Integrated Development of Leather Sector sub-scheme of ILDP (188.7 KB)
  • Guidelines for Human Resource Development Sub-scheme of ILDP (259.52 KB)
  • Guidelines of Support to Artisan sub-scheme of ILDP (185.67 KB)
  • Guidelines for Leather Technology, Innovation and Environmental Issues sub-scheme of ILDP (194.16 KB)
  • Guidelines of Mega Leather Cluster sub-scheme of ILDP (283.06 KB)
  • Guidelines for Establishment of Institutional facilities sub-scheme of ILDP (162.44 KB)