• The commerce and industry ministry said Indian Footwear and Leather Development Programme (IFLDP) has been approved for continuation with a financial outlay of Rs 1,700 crore. 

• It was earlier called Indian Footwear Leather and Accessories Development Programme (IFLADP).

• IFLDP has been approved by the Cabinet for continuation till March 31, 2026, or till further review, whichever is earlier.

• Leather sector has been identified as one of the focus sectors under the ‘Make in India’ programme of the government of India.

• The programme aims at development of infrastructure for the leather sector, address environmental concerns specific to the leather sector, facilitate additional investments, employment generation and increase in production.

• The programme has a direct benefit towards quality employment generation especially for women, skill development, decent work, making the industry more environment friendly and prompting a sustainable production system. 

• The leather clusters located in different parts of the country have accrued benefit in terms of reduction of poverty, gender equality, sector specific skill/education, etc, thus touching many of the Sustainable Development Goals (SDGs). 

• Most of the National Development Plans (NDP) also align with the SDGs. NDPs such as economic growth, reduction in poverty, generation of employment, quality education/skills, gender equality, good health and well-being, infrastructure development, affordable and clean energy and other environmental benefits are well-served by the programme.

Sub-schemes approved under the programme are:

1) Sustainable Technology and Environmental Promotion - proposed outlay Rs 500 crore: Special Purpose Vehicle constituted for each Common Effluent Treatment Plant (CETP) would be provided assistance at 80 per cent of the total project cost for Northeast areas with industry’s/beneficiary share to be 20 per cent of the project cost and at 70 per cent  of the total project cost for other areas with industry’s/beneficiary share to be 30 per cent of the project cost with a limit of Rs 200 crore.

2) Integrated Development of Leather Sector (IDLS) - proposed outlay Rs 500 crore: Assistance would be provided to the sectoral units for their modernisation/capacity expansion/technology upgradation at 30 per cent to MSME units and 20 per cent to other units. Financial assistance is being proposed to northeast areas also at 40 per cent of cost of plant & machinery to MSME units and 30 per cent of the same to other units with additional 5 per cent financial assistance for the domestically manufactured plant and machinery. Maximum assistance will be provided upto Rs 15 crore per product line keeping in view five times increase in upper limit of investment in plant and machinery by MSME.

3) 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 Footwear Design and Development Institute (FDDI) campuses are planned.   

4) Mega Leather Footwear and Accessories Cluster Development (MLFACD) - 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 at 50 per cent of the project cost or at 70 per cent of the project cost in northeast 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 cost of land with maximum Government assistance being limited to Rs 125 crore.

5) Brand Promotion of Indian Brands in Leather and Footwear Sector - proposed outlay Rs 100 crore: Assistance is proposed to be 50 per cent of total project cost subject to limit of Rs 10 crore for each brand in next three years to promote 10 Indian brands in the international market. 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.

6) Development of Design Studios - proposed outlay Rs 100 crore: 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 interface for the trade fairs.  Design studios will be a kind of ‘one-stop-shop' providing a wide range of services. 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.

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