GOI has approved the special package for employment generation in leather and footwear sector with an approved expenditure of Rs 2600 crores over the three financial years from 2017-18 to 2019-20.
This scheme will help in developing the infrastructure for the leather sector while addressing the environmental concerns related to this sector. This package has the potential to generate 3.24 lakhs new jobs in 3 years and assist in formalization of 2 lakh jobs as cumulative impact in footwear, leather and accessories.
This scheme proposes to aid with skill development training to unemployed people at Rs 15000 per person, for skill upgradation of employed workers at Rs 5000 per employee and for training of trainers at Rs 2 Lakhs per trainer. 75% of the people should be placed and it’s mandatory. The main purpose is to provide training to 4.32 lakhs unemployed people, upgrade skills of 75,000 existing employees and train 150 master trainers with proposed outlay of Rs 696 crores.
The purpose is to incentivize investment, manufacturing which also includes job creation by backend grant and subsidies. It covers 30% of the cost of new plant and machinery to MSMEs and 20% of the cost of plant and machinery to other units for modernization / technology upgradation in the existing units and for setting up new units. This scheme aims to incentivize 1000 units with proposed outlay of Rs 425 crores.
This sub-scheme proposes to help Footwear Design and Development Institute(FDDI) to upgrade some of their existing campuses into “Centres of Excellence “and establishment of three new fully equipped skill centres with proposed outlay of Rs 147 crore for the three years.
It aims at providing infrastructure support to the leather, footwear and accessories industry by establishing clusters. Graded assistance is provided up to 50% of the project cost excluding land with maximum assistance limited to Rs 125 crores. An outlay of Rs 360 crores has been proposed to support 3-4 new MLFAC.
Under this sub scheme, assistance is provided for upgradation/installation of Common Effluent Treatment Plants(CETPs) at 70% of the total project cost. This scheme will also help national level sectoral industry council and support for preparation of vision document for this sector. Total outlay for this scheme is proposed to be Rs 782 crores for three years.
The assistance is proposed to be 50% of the total project cost with a cap of Rs 3 crore for each brand, each year for three years. The proposal is to promote 10 Indian brands in the international market with proposed outlay of Rs 90 crores for three years.
It is proposed to provide the employer’s contribution of 3.67% to EPF for all new employees in the sector, enrolling in EPFO for the first three years of their employment. It will be applicable to the employees with salary up to Rs 15,000. The proposed outlay is Rs 100 crores to assist in formalization of approximately 2,00,000 jobs in the sector.