Indian Footwear and Leather Development Programme (IFLDP)
About the Scheme
The central government on March 3, 2022, released a notification approving the Central Government Scheme ‘Indian Footwear and Leather Development Programme (IFLDP)’ with an allocation of ₹1700 crore till March 31, 2026 or till further review, whichever is earlier.
The scheme aims to help in:
1. Development of infrastructure for the leather and footwear sector
2. Address environment concerns specific to the leather and footwear sector
3. Facilitate additional investments
4. Generate employment within sector
5. Help in increase of production
The scheme will be implemented through seven sub-schemes including:
i) Sustainable Technology and Environmental Promotion (outlay ₹500 crore): Assistance for each Common Effluent Treatment Plant (CETP) would be provided assistance @80% of the total project cost for Northeastern Areas with industry/beneficiary share to be 20% of the project cost and @70% of the total project cost for other areas with industry/beneficiary share to be 30% of the project cost with a limit of ₹200 crore.
ii) Integrated Development of Leather Sector (IDLS) (outlay ₹500 crore): Assistance would be provided to the sectoral units for their modernization/capacity expansion/technology up-gradation @30% to Micro, Small and Medium Enterprise (MSME) units and 20% to other units. Financial assistance would be provided for Northeastern Areas @40% of cost of plant & machinery to MSME units and 30% to other units.
iii) Establishment of Institutional Facilities (outlay ₹200 crore): Assistance would be provided for setting up of new infrastructure and upgradation of requisite infrastructure of existing campuses of Footwear Design and Development Institute (FDDI). This would interalia include setting up of International Testing Centre, Sports Complex, construction of girls hostel etc within the existing campuses of FDDI.
iv) Mega Leather Footwear and Accessories Cluster Development (MLFACD) (outlay ₹300 crore):- The sub-scheme aims at world-class infrastructure and to integrate the production chain in a manner that it caters to the business needs of the leather and domestic footwear industry and export market. Graded assistance would be provided @50% of the project cost (@70% of the project cost in Northeastern areas), for land development, core infrastructure, social infrastructure, production facilities including ready to use sheds with plug and play facility, R&D support and export services excluding cost of land with maximum Government assistance being limited to ₹125 crore.
v) Brand Promotion of Indian Brands in Leather and Footwear Sector (outlay ₹100 crore): The GoI assistance would be provided 50% total project cost subject to limit of ₹3 crore for each brand each year during the next three years to promote at least 10 Indian brands in the International Market. All Indian Manufacturers in the Footwear and Leather Sector including finished leather, leather goods, leather garments, saddlery, footwear and footwear components industries having cash profit for last 3 years and having minimum exports/domestic sales of ₹50 crore per year are eligible under the sub-scheme.
vi) Development of Design Studios (outlay ₹100 crore): This is a new sub-scheme introduced to catalyse the technological and design transformation of the sector. Assistance would be provided to develop 10 Indian design studios. The studios will spur design innovation, promote market and export linkages, facilitate buyer-seller meets, display designs to international buyers and work as 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 Footwear Design and Development Institute (FDDI), Central Leather Research Institute (CLRI), National Institute of Design (NID), National Institute of Fashion Technology (NIFT), India Brand Equity Foundation (IBEF), Indian Institute of Foreign Trade (IIFT) or institutes of similar standing or any large unit of the industry or group of industry would be eligible to set up design studios.
vii) Procedure for implementation of Vision document component under STEP sub-scheme of IFLDP: For the sustainable growth of the Footwear and Leather industry, it is important to consider the changes in the supply of raw material, demand for the end products, policy initiatives and societal relevance/acceptance over a reasonable period of time. Therefore, a vision document for the Indian Footwear and Leather Sector needs to be prepared. In addition there is also a need to assist and promote national Level body of stakeholders to ensure competitiveness of domestic players. The aim of this component is to prepare a vision document for the Indian Footwear and Leather Sector which would serve as a guideline for the technological developments and policy directives to be made in the sector. It is also an aim of the sub-scheme to extend support to national level industry body for ensuring focus on vision for the sector. The Development Council for Footwear and Leather Industry notified by DPIIT under IDR Act shall be preparing Vision Document. The Document will be prepared in stakeholder consultations and views of various industry bodies would suitably be factored into. GOI assistance as 100% of the project cost would be made available, as one-time grant-in-aid under this component, subject to a maximum limit of Rs. 5 crore, for the preparation of the vision document.
The link to each guideline mentioned above is available on website of DPIIT i.e. https://dpiit.gov.in/indian-footwear-leather-and-accessories-development-program and can also be accessed through the Important Links section below.