New Delhi: Indian Footwear and Leather Development Programme(IFLDP) aims at the development of infrastructure for the leather sector, addressing environmental concerns specific to the leather sector, facilitating additional investments, employment generation, and increase in production.

1. The following sub-schemes have been approved under IFLDP during 2021-26:-

(i) Sustainable Technology and Environmental Promotion (proposed outlay Rs.500 crore):- Special Purpose Vehicle constituted for each CETP would be provided assistance @ 80% of the total project cost for Northeastern Areas with industry’s/beneficiary share to be 20% of the project cost and @ 70%  of the total project cost for other areas with industry’s/beneficiary share to be 30% of the project cost with a limit of Rs.200 crore.

(ii) Integrated Development of Leather Sector (IDLS) sub-scheme (proposed outlay Rs.500 crore):- Assistance would be provided to the sectoral units for their modernization/capacity expansion/technology up-gradation on or after 01.01.2020 @30% to MSME units and 20% to other units. Financial assistance is being proposed for North-Eastern Areas also @40% of the cost of plant & machinery to MSME units and 30% of the same to other units with an additional 5 % financial assistance for the domestically manufactured plant and machinery. Maximum assistance will be provided to Rs.15 crore per product line, keeping in view 5 times increase in the upper limit of investment in Plant and Machinery by MSME 

(iii) Establishment of Institutional Facilities (proposed outlay Rs.200 crore):- Setting up of International Testing Centre, Sports Complex, replacement of conventional light fixtures with LED lights, and construction of girls hostel in FDDI campuses are planned.   

(iv) Mega Leather Footwear and Accessories Cluster Development (MLFACD) sub-scheme (proposed outlay Rs.300 crore):- The sub-scheme 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. 

Graded assistance is proposed to be provided @50% of the project cost or @70% of the project cost in Northeastern areas, for land development, core infrastructure, HRD, and social infrastructure, production facilities including ready to use sheds with plug and play facility, R&D support, and export services excluding the cost of land with maximum Government assistance being limited to Rs. 125 crore.

(v) Brand Promotion of Indian Brands in Leather and Footwear Sector (proposed outlay Rs.100 crore):- The GoI assistance is proposed to be 50% of the total project cost subject to a limit of Rs 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.

(vi) Development of Design Studios (proposed outlay Rs.100 crore):- This is a new sub-scheme. Assistance would be provided to develop 10 Indian design studios. The studios will promote marketing/export linkages, facilitate buyer-seller meets, display designs to international buyers, and work as an interface for the trade fairs.  Design Studios will be kind of ‘one-stop- shop' providing a wide range of services: design, technical support, quality control, etc. Institutes like FDDI, CLRI, NID, NIFT, IBEF, IIFT, or institutes of similar standing or any large units of the industry or group of industry would be the implementing agencies.

2. Total approved outlay (Component –wise and Year-wise)

(Rs. In crore)

Sl. No. Name of Sub-scheme 2021-22 2022-23 2023-24 2024-25

2025-26 Total (upto 2021-26)

1 Mega Leather Footwear and Accessories Cluster Development(MLFACD) 50.00 50.00 50.00 50.00 100.00 300.00

2. Integrated Development of Leather Sector (IDLS) 100.00 100.00 100.00 100.00 100.00 500.00

3. Sustainable Technology and Environmental Promotion (STEP) 140.00 100.00 100.00 100.00 60.00 500.00

4. Promotion of Indian Brands in Leather and Footwear Sector 16.00 24.00 33.00 18.00 9.00 100.00

5. Development of Design Studios 16.00 24.00 33.00 18.00 9.00 100.00

6. Establishment of Institutional Facilities 90.00 25.00 25.00 30.00 30.00 200.00

  Total 412.00 323.00 341.00 316.00 308.00 1700.00