The Indian Footwear and Leather Development Programme (IFLDP) (formerly IFLADP) has been approved for continuation from 2021 to 22 with a budget of Rs. 1,700 crore, according to the ministry of commerce.
The cabinet approved the programme on January 19 for continuance through March 31, 2026, or until further review, whichever comes first.
The IFLDP intends to build infrastructure for the leather business, address environmental challenges specific to the leather sector, and promote additional investments, job creation, and production growth.
Sustainable technology and environmental promotion are among the sub-schemes approved under the programme, as are integrated development of the leather sector (IDLS), the establishment of institutional facilities, the Mega Leather Footwear and Accessories Cluster Development, brand promotion, and the development of design studios.
Sub-schemes
During the period 2021-26, the following sub-schemes have been approved under the IFLDP.
- Sustainable Technology and Environmental Promotion (planned outlay of Rs.500 crore): A Special Purpose Vehicle CETP would be offered assistance at 80% of the whole project cost for Northeastern Areas and 70% of the total project cost for other areas, subject to a ceiling of Rs.200 crore.
- IDLS (Integrated Development of Leather Sector) (planned outlay of Rs.500 crore): Assistance would be offered to sectoral units for modernization/capacity expansion/technology up-gradation on or after January 1, 2020, at a rate of 30% to MSME units and 20% to other units.
- Establishment of Institutional Facilities (planned expenditure of Rs.200 crore): The establishment of an International Testing Centre, a Sports Complex, the replacement of traditional light fixtures with LED lights, and the development of ladies’ dormitories on FDDI campuses are all planned.
- Mega Leather Footwear and Accessories Cluster Development (MLFACD) (planned expenditure of Rs.300 crore): The sub-scheme strives for world-class infrastructure and to integrate the production chain in a way that meets the business needs of the leather and footwear industries, both domestically and internationally.
- Brand Promotion of Indian Brands in the Leather and Footwear Sector (Rs.100 crore): The GoI aid is intended to be 50% of the total project cost, subject to a cap of Rs 10 crore for each brand for the next three years, in order to promote ten Indian brands in the international market.
- Brand Promotion of Indian Brands in the Leather and Footwear Sector (Rs.100 crore): The GoI aid is intended to be 50% of the total project cost, subject to a cap of Rs 10 crore for each brand for the next three years, in order to promote ten Indian brands in the international market.
Impact
The initiative directly benefits quality job creation, particularly for women, skill development, decent work, making the industry more environmentally friendly, and encouraging a sustainable production system.
The leather clusters spread around the country have benefited in terms of poverty reduction, gender equality, sector-specific skill/education, and so on, touching on several of the Sustainable Development Goals (SDGs).
The IFLAD Programme supports NDPs (National Development Programmes) such as economic growth, poverty reduction, job creation, quality education/skills, gender equality, excellent health and well-being, infrastructure development, inexpensive and clean energy, and other environmental advantages.