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No.14/005/036/2003
June 25, 2003
Members of the Council,
Dear Members,
As members are aware, the Council had been constantly representing for the past several years for de-reservation of all leather products from the scope of SSI. Such representation was based on the views of the industry and recommendations of the Expert Committees constituted by the Government from time to time, about the need to encourage setting up of large scale units in the Country so that economies of scale in operation through enhanced production and productivity can be achieved.
Based on the Council’s repeated requests, the Government decided to de-reserve all leather products from the SSI List, and an announcement to this effect was made in the speech of the Hon’be Union Minister of Finance Shri Jaswant Singh while unveiling the Union Budget 2003-04. In order to give effect to the announcement, Department of Industrial Policy & Promotion in the Ministry of Commerce & Industry issued a Notification No.S.O.649(E) dated June 3. 2003 de-reserving all the leather products from the scope of SSI. A copy of the said notification alongwith the list of items which were de-reserved is attached herewith for your information.
It may be recalled that entire tanning segment and leather shoes were already de-reserved from SSI sector in the month of June 2001. As such, with the recent Notification for remaining segments, the entire leather and leather products industry have now been de-reserved from the SSI sector.
In order to enable the members to understand the impact of de-reservation, the Council prepared a brief note and the same is attached herewith for your perusal.
The Council calls upon the members to make use of the industrial policy thrust given by the Government to augment the production capacities and achieve greater productivity to cope with the increasing demand for leather and leather products.
With best regards,
Yours sincerely,
S Audiseshiah
Executive Director
NB: Please note that Full PVC chappals, sandals and shoes are still under the SSI List, which fall under the category of plastic products.
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