ILDP Scheme

ILDP or Indian Leather Development Programme is implemented by Government of India under the XI five year plan. In the 1990’s DIPP had implemented an ambitious programme named ‘National Leather Development Programme (NLDP)’ with considerable financial support of UNDP. Many institutions of the country in the leather sector were strengthened under NLDP. ILDP is a successor programme. The main objective of the programme is to support the leather industry in augmenting raw material, enhancing capacity, addressing environmental concerns, development of human resource and attracting investment and improving the trade. The several components of the programme are as follows:

The several components of the programme are as follows :

  • 1) Integrated Development of Leather Sector (IDLS): IDLS scheme is an investment grant scheme for technology upgradation, modernization, capacity creation in all segments of the Leather Industry
  • 2) Leather Tanning Complex at Nellore
  • 3) Establishment of Branch of FDDI at Fursatganj
  • 4) Footwear Complex, Chennai
  • 5) Saddlery Development
  • 6) Support for rural artisans
  • 7) Human Resource Development
  • 8) Upgradation of facilities of FDDI and Establishment of other such institutes and centres
  • 9) Upgradation / installation of infrastructure for environmental protection in the Leather sector
  • 10) Mission Mode: Investment promotion activities & Research, Evaluation & Consultancy Services

Rs.200 crores have been earmarked for upgradation / installation of infrastructure for environmental protection. Under the scheme of upgradation / installation of infrastructure for environmental protection, the ZLD projects in the seven CETPs will be covered. 50% of the ZLD project cost will be met under this scheme, subject to a limit of Rs. 50 crores per project. The Government of Tamil Nadu will cover upto 15% of the project cost subject to a ceiling of Rs.20 crores. The balance amount of 35% of the project cost will be borne by the member tanneries of the respective CETPs.

The salient features of these guidelines are:

  • The scheme is applicable, amongst others of the leather sector, to tanning industry for establishment, upgradation and expansion of CETPs.
  • A group of tanners could take advantage of the scheme by forming a SPV.
  • An existing CETP could also act as the SPV or, in order to economise on overhead expenditure, a group of CETPs could form a SPV for implementing upgradation projects in respective CETPs; all such CETPs will be eligible for receiving grant of GoI.
  • In order to provide an opportunity to secure the best available technology, the scheme envisages that the SPV could tender the project indicating the current situation and expected situation at the end of the project and invite the bidders to offer technology.
  • Though appropriate care would be taken to prescribe boundary conditions for new technologies, in order to ensure that the new technology would deliver the results expected, the successful bidder would operate and maintain the plant for a period of 10 years.
  • 15% of the capital cost of the project would be released along with the O&M cost during the 10 year period or a bank guarantee for a like amount would be provided by the bidder.
  • 50% of the capital cost subject to a ceiling of Rs. 50 crores for each CETP will be given as grant by GoI; 15% by the state government; and the balance will be contributed by the beneficiaries.
  • The SPV will make a commitment to the government that any gap in funding will be met by them, to enable it to consider DPRs.
  • DPRs based on the tender document and the techno-commercial offer of the successful bidder would be considered by the committee appointed for this purpose by the DIPP, GoI.
  • SPV would appoint contractors / consultants in a transparent and fair manner. Appropriate performance guarantee will be taken by the SPV from the consultants / contractors.
  • A Programme Management Consultant to be appointed by DIPP will be responsible for monitoring and evaluation of the project.
  • The Project Approval Committee will monitor the progress of implementation once in a quarter.
  • The project would be deemed to have been completed only after filing project commissioning report by SPV and seconded by PMC.

    • IFLADP Scheme

    IFLADP The Department for Promotion of Industry and Internal Trade (DPIIT), GOI introduced a sub-scheme called “Leather Technology, Innovation and Environmental Issues under IFLADP with a funding pattern of 70% of the project cost as GOI’s subsidy and 30% by the beneficiaries.This scheme offered a great opportunity to the operational ZLD projects to further modernize, expand and upgrade themselves to be able to reduce the operational cost on the one hand, and improve their efficiency on the other. Four CETPs- RANITEC, SIDCO I, SIDCO II and PERTEC requested CEMCOT to be their Implementing Agency for the above projects. The proposals were sent to DPIIT through CLRI which is the Project Monitoring Agency. The DPIIT approved the proposals of the all four CETPs . CEMCOT got a subsidy at the rate of 15% of the project cost from the Govt. of Tamil Nadu for its earlier projects under ILDP. On the same analogy and precedent CEMCOT had requested the State Government, with due concurrence of the Government of India, to sanction subsidy at the rate of 15% of the current project costs of all the four projects. The GoTN acceding to the request of CEMCOT has approved subsidy at the rate of 15% of the project cost

    The Sustainable Technology and Environmental Promotion (STEP) sub-scheme is part of the Indian Footwear and Leather Development Programme (IFLDP). The IFLDP is a five-year program that runs from 2021–2026 and has an outlay of Rs. 1,700 Crores. The IFLDP has six sub-schemes, including STEP, Integrated Development of Leather Sector (IDLS), Mega Leather,Footwear and Accessories Cluster Development (MLFACD), Brand Promotion of Indian Brands in Leather & Footwear Sector, Development of Design Studios, and Establishment of Institutional Facilities.