Indian Cabinet extends IFLDP with an outlay of ₹1,700 crore

The Union Cabinet has approved the continuation of the Indian Footwear and Leather Development Programme (IFLDP), previously known as IFLADP, from 2021-22 with a permitted financial outlay of ₹1,700 crore. The programme has been approved as continuation of the erstwhile IFLADP till March 31, 2026 or till further review, whichever is earlier.

IFLDP aims at development of infrastructure for the leather sector, address environmental concerns specific to the leather sector, facilitate additional investments, employment generation and increase in production, the ministry of commerce and industry said in a statement.

The sub-schemes approved under IFLDP during 2021-26 are Sustainable Technology and Environmental Promotion (proposed outlay ₹500 crore); Integrated Development of Leather Sector (IDLS) sub-scheme (proposed outlay ₹500 crore); Establishment of Institutional Facilities (proposed outlay ₹200 crore); Mega Leather Footwear and Accessories Cluster Development (MLFACD) sub-scheme (proposed outlay ₹300 crore); Brand Promotion of Indian Brands in Leather and Footwear Sector (proposed outlay ₹100 crore) and Development of Design Studios (proposed outlay ₹100 crore).

The Union Cabinet has approved the continuation of the Indian Footwear and Leather Development Programme (IFLDP), previously known as IFLADP, from 2021-22 with a permitted financial outlay of ₹1,700 crore. The programme has been approved as continuation of the erstwhile IFLADP till March 31, 2026 or till further review, whichever is earlier.

Under the sub-schemes, Special Purpose Vehicles constituted for each CETP would be provided assistance at 80 per cent of the total project cost for Northeastern areas with industry’s/beneficiary share to be 20 per cent of the project cost. Assistance would be provided to the sectoral units for their modernisation/capacity expansion/technology up-gradation on or after January 1, 2020 at 30 per cent to MSME units and 20 per cent to other units. Financial assistance is being proposed to Northeastern areas also at 40 per cent of cost of plant and machinery to MSME units and 30 per cent of the same to other units with additional 5 per cent financial assistance for the domestically manufactured plant and machinery.

One of the sub-schemes aims at world-class infrastructure and to integrate the production chain in a manner that caters to the business needs of the leather and footwear industry so as to cater to the domestic market and exports.

For brand promotion of Indian brands in the leather and footwear sector, the assistance is proposed to be 50 per cent of total project cost subject to a limit of ₹10 crore for each brand in the next three years to promote 10 Indian brands in the international market in 3 years. The designated agency to implement the sub-scheme is being proposed to be selected amongst institutes like NID, NIFT, IBEF, IIFT or Institutes of similar standing.

Assistance would be provided to develop 10 Indian design studios. These studios will promote marketing/export linkages, facilitate buyer-seller meets, display designs to international buyers and work as interfaces for the trade fairs. Design Studios will be a kind of ‘one-stop- shop’ providing a wide range of services: design, technical support, quality control etc.

Fibre2Fashion News Desk (RR)

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