In a major boost to the leather industry in Tamil Nadu, four projects with a total outlay of ₹107.33 crore have been approved by the Department of Industrial Policy and Promotion (DIPP) under the Indian Footwear, Leather & Accessories Development Programme (IFLADP).
According to a statement issued by the Ministry of Commerce and Industry, this move will facilitate upgradation of infrastructure, job creation and environmental sustainability.
The projects approved in Tamil Nadu are: upgradation of Tala Trichy Common Effluent Treatment Plant (CETP) at Tiruchi, Pallavaram CETP at Nagalkeni, Chrompet, and SIDCO Phase-I CEPT at Ranipet and Perundurai Leather Industries Eco Security Pvt. Ltd. at Erode.
The Leather Technology, Innovation and Environmental Issues sub-scheme under IFLADP provides financial support at 70% of the project cost to leather clusters to meet the prescribed pollution control discharge norms. This covers establishment, expansion, upgradation of CETPs, developing secure landfills, common recovery units, management of sludge and any other techniques for hazardous waste management.
The Central government has also approved a special package for employment generation in leather and footwear sector. The package involves implementation of Central Sector Scheme - IFLADP with an approved expenditure of ₹2,600 crore for 2017-20.
The scheme aims at development of infrastructure for the leather sector, address environmental concerns specific to the leather sector, facilitate additional investments, generate employment and increase production. Enhanced Tax incentives will attract large scale investments in this sector and reforms in labour laws taking into account the seasonal nature of the sector will support economies of scale.