Latest News | Financial Assistance Will Not Be Provided for Second-hand Machinery Under IFLDP: Guidelines

New Delhi, Mar 3 (PTI) Financial assistance will not be provided for second-hand machinery under the Indian Footwear and Leather Development Programme (IFLDP) as it will support the modernisation and technology upgradation of manufacturing units of the sector, according to guidelines.

The assistance cannot be utilised for purposes other than for which it has been sanctioned, according to the guidelines for integrated development of leather sector sub-scheme of IFLDP.

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The amount released by the government cannot be utilised towards adjustment of default in repayment of principal and payment of interest by the borrower, the guidelines added.

The programme was approved with a financial outlay of Rs 1,700 crore. It aims to develop infrastructure for the leather sector, address environmental concerns specific to the leather sector, facilitate additional investments, employment generation and increase in production.

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There are six sub-schemes of the programme and include sustainable technology and environmental promotion (STEP); integrated development of leather sector; establishment of institutional facilities; Mega Leather Footwear and Accessories Cluster Development; brand promotion; and development of design studios.

The guidelines stated that all existing units in the footwear and leather industry including tanneries, leather goods, saddlery, and non-leather footwear component sector having cash profits for two years; undertaking modernisation or technology upgradation on or after January 1, 2020, are eligible for assistance.

"The assistance would not be provided for second-hand machinery as the scheme is essentially to support the modernisation and technology upgradation of the units," it said.

It said the assistance under the scheme will be the investment grant to the extent of 40 per cent of the cost of plant and machinery to the MSMEs units and 30 per cent to other units established in north-eastern areas and setting up a new unit subject to a ceiling of Rs 15 crore.

Under STEP, it said assistance will be provided for setting up or upgradation of common effluent treatment plants (CETPs); and preparation of vision document for footwear and leather industry.

"This (CETP) component would provide financial support to leather clusters to meet the prescribed pollution control discharge norms. This would cover establishment/ expansion / upgradation of CETPs, developing secure landfills and any other techniques for hazardous waste management," the guidelines said.

According to the separate guidelines of the mega leather footwear and accessories cluster development sub-scheme of IFLDP, preference will be given for the development of brownfield or existing clusters.

It added that proposals for developing a cluster will be invited from all state/UTs by an open application process.

According to the guidelines for brand promotion, all Indian manufacturers in the sector having cash profits for the past three years, minimum exports of Rs 50 crore per year of products manufactured by them or having minimum domestic sales of Rs 50 crore per year will be eligible for the assistance.

It added that "Indian brands should be owned and controlled by resident Indian citizens and/or companies which are owned and controlled by resident Indian citizens". HRS hrs

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)