The government is likely to extend an incentive scheme 'the Indian Footwear Leather and Accessories Development Programme (IFLADP)' for leather and footwear industries till 2025-26, to further boost manufacturing, exports and job creation. The commerce and industry ministry has submitted a proposal for implementation of the IFLADP with an outlay of Rs 1,700 crore, to be incurred during 2021-22 to 2025-26, and the Union Cabinet may soon approve the same.
The programme has six components — Sustainable Technology and Environmental Promotion (proposed outlay Rs 500 crore); Integrated Development of Leather Sector (proposed outlay Rs 500 crore); Establishment of Institutional Facilities (Rs 200 crore); Mega Leather Footwear and Accessories Cluster Development (Rs 300 crore); Brand Promotion of Indian Brands in Leather and Footwear Sector (Rs 100 crore); and Development of Design Studios (Rs 100 crore). The expenditure finance committee has already approved the proposal of the ministry.
Under the 'Sustainable Technology and Environmental Promotion' component, assistance could be provided for setting up a common effluent treatment plant; and support could be extended for modernisation/capacity expansion/ technology up-gradation under the 'Integrated Development of Leather Sector' component. Similarly, under the 'Establishment of Institutional Facilities' component, support could be provided for setting up of new infrastructure and upgradation of requisite infra of the existing campuses of Footwear Design and Development Institute (FDDI).