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No.14/005/ 125/2005
Nov 8, 2005
Members of the Council
Dear Members,
Sub: Modernization Scheme for the leather sector notified by the Government of India w.e.f. Nov 3, 2005
We wish to inform you that based on the recommendations of the Working Group earlier constituted by the Union Planning Commission, the Department of Industry Policy & Promotion (DIPP) in the Union Ministry of Commerce & Industry has drawn up various schemes for leather & leather products industry for implementation during Tenth Five Year Plan period 2002-07 under the Integrated Leather Development Programme.
Modernization/technology upgradation of manufacturing facilities with a total Central Assistance of Rs.290 Crore, is one of the schemes formulated for overall development of the leather sector.
In this background, the Council is now happy to inform you that the DIPP has formally notified the Modernization Scheme for the leather sector and issued an Office Memorandum No.5(18)/2002-Leather dated Nov 3, 2005. The scheme basically aims at modernization, expansion and technological upgradation of all segments of the leather industry namely tanneries, footwear, footwear components, leather garments, leather goods and saddlery. The Scheme will be implemented through Programme Implementation Units (PIUs) as detailed below:
Name of the PIU Product segment
Central Leather Research Institute (CLRI),
Adyar, Chennai 600 020
Tel : 044-2491 0846/2491 0897
Fax: 044-2336 0581 23362843
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Leather
Footwear Design & Development Institute (FDDI)
A-10A, Sector 24,Noida 201 301
Tel: 0120 2412456 / 2412534 / 2412557
Fax:0120 2411301 / 24112556
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Footwear, Footwear Components, Leather Garments Leather Goods, Saddlery
A copy of the Office Memorandum No.5(18)/2002-Leather dated Nov 3, 2005, and the Scheme guidelines alongwith supporting Annexures containing the details of the machinery & equipments as well as Application form for availing the financial assistance are enclosed herewith for your perusal. These are self explanatory.
According to the guidelines, investment grant from the Government of India shall be provided to an extent of 30% of the cost of Plant & Machinery for SSI Units; and 20% of the cost of Plant & Machinery for non-SSI Units, subject to a ceiling of Rs.50 Lakh. The scheme will be applicable from Nov 3, 2005, and will be implemented during the Tenth Plan period.
For those projects involving Bank loans, the applications for modernization have to be directly submitted to the concerned PIUs. In respect of projects involving own investments, the applications have to be directly submitted to the Small Industries Development Bank of India (SIDBI).
Member-exporters may kindly take note of the above and avail the scheme as per the stipulated procedures & guidelines.
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As regards the 134 applications earlier submitted by the tanners until Aug 2004 seeking financial assistance (as a continuation of Tannery Modernization Scheme implemented on Ninth Plan period) and which were kept pending for want of approval, the Council has already requested the Ministry of C&I to consider and sanction the same under the Modernization Scheme proposed for Tenth Plan period.
In this regard, Chairman of the Council Shri M Rafeeque Ahmed already met Hon’ble Union Minister for Commerce & Industry Shri Kamal Nath and submitted representation requesting him to give effect to the modernization scheme from the beginning of the Tenth Plan i.e., from April 1, 2002. As this request was not agreed to, the Chairman subsequently represented to the Hon’ble Minister to approve the pending 134 applications atleast under a different scheme as deem appropriate. The response of the Government is awaited. The Council shall further pursue the matter.This is for your information.
With regards,
Yours sincerely
Dr K Elangovan
Executive Director
Modernization Scheme - Guidelines - Application Form
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