The Indian Leather sector is all set to grow at a phenomenal scale in the coming days, thanks to the several schemes being promoted by the Union government. Government has decided to put in action three sub schemes in an attempt to further boost the growth of the leather industry. SMEs will reportedly benefit from these schemes in a big way. The sub-schemes for leather sector In an endeavor to empower SME leather units and to deal with dearth of manpower for the sector, the government has floated three sub-schemes under the Indian Leather Development Programme to be executed by the Central Government during the Eleventh Five Year Plan. Jyotiraditya M Scindia, minister of state for commerce and industry, informed “Grants-in-aid will be offered by the Central government for implementation of three sub-schemes with a lay out of Rs 253.43 crore which has already been allocated for the implementation of Integrated Development of Leather Sector(IDLS).” As per the sub-scheme, help will be provided to small-scale leather units in the form of grant at the rate of 30 percent, while a grant of 20 percent has already been approved for non-sme leather units up to Rs 50 lakh. On the other hand, grant above RS 50 lakh with a maximum limit of Rs 2 crore will be offered as assistance at a rate of 20 percent. The financial aid in the form of grants-in-aid will assist SME leather units finance their expansion and practical investment projects, informed a proprietor of a small-time leather company in Mumbai. Industry players are optimistic that the execution of three sub-schemes will help tackle major challenges encountered by the SME leather units, thereby help the overall growth of the sector. At present the leather industry employs 2.5 million persons. Around 60-65 percent of the production centers on the SME sector. Also the sector is looked upon amongst the top eight export earners for India. Has enormous potential for future growth. |
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