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(The Gist of PIB) Implementation of IFLADP [JULY-2019]

Implementation of IFLADP

The Central Government has approved implementation of Central Sector Scheme Indian Footwear, Leather and Accessories Development Programme (IFLADP) with an approved expenditure of Rs. 2600 crore over the three financial years from 2017-18 to 2019-20.

Key highlights about the Sub-schemes under IFLADP are as stated below:

Human Resource Development (HRD) sub-scheme: HRD sub-scheme provides assistance for Placement Linked Skill Development training to unemployed persons @ Rs. 15,000 per person, for skill up-gradation training to employed workers @ Rs. 5,000 per employee and for training of trainers @ Rs. 2 lakh per person.
Integrated Development of Leather Sector (IDLS) sub-scheme: IDLS sub-scheme incentivizes investment and manufacturing including job creation by providing backend investment grant/subsidy @ 30% of the cost of new Plant and Machinery to Micro, Small & Medium Enterprises (MSMEs) and @ 20% of the cost of Plant and Machinery to other units for modernization and technology upgradation in existing units and also for setting up of new units.
Establishment of Institutional Facilities sub-scheme: The sub-scheme provides assistance to Footwear Design & Development Institute (FDDI) for upgradation of some of the existing campuses of FDDI into Centres of Excellence (CoEs) and establishing 3 new fully equipped skill centres alongside the upcoming Mega Leather Cluster.
Mega Leather, Footwear and Accessories Cluster (MLFAC) sub-scheme: The MLFAC sub-scheme provides infrastructure support to the Leather, Footwear and Accessories Sector by establishment of Mega Leather, Footwear and Accessories Cluster. Graded assistance is provided upto 50% of the eligible project cost, excluding cost of land with maximum Government assistance being limited to Rs. 125 crore.
Leather Technology, Innovation and Environmental Issues sub-scheme: Under this sub-scheme, assistance is provided for upgradation/installation of Common Effluent Treatment Plants (CETPs) @ 70% of the project cost subject to a limit of Rs. 200 crore. The sub-scheme also provides for support to national level sectoral industry council/ association and support for preparation of vision document for leather footwear and accessories sector.
Promotion of Indian Brands in Leather, Footwear and Accessories Sector sub-scheme: Under this sub-scheme, the eligible units approved for Brand Promotion are assisted. The Government assistance is limited to 50% of total project cost subject to a limit of Rs.3 crore for each brand, each year for 3 years.
Additional Employment Incentive for Leather, Footwear and Accessories Sector sub-scheme: Under this scheme, employers’ contribution of 3.67% to Employees’ Provident Fund for all new employees in Leather, Footwear and Accessories sector, are provided for enrolling in EPFO for first 3 years of their employment.