New Delhi: The government today approved over Rs912 crore for development of infrastructure in the fast growing leather industry during the 11th Plan period.
The approval to the ‘Indian Leather Development Programme’, which will also address concerns on environment, was given by the Union Cabinet here.
“The scheme would lead to development of infrastructure for the sector and would facilitate additional investment and employment generation,” Information and Broadcasting Minister P R Dasmunsi told reporters after the Cabinet meeting.
The funds would be used for training, infrastructure development, capacity and technology upgradation.
The Indian leather industry, estimated to be Rs40,000 crore, is growing at a rate of 20%. Exports constitute around Rs15,000 crore of the total basket and have been growing by 13-15%.
“The Indian leather industry is becoming more organised and requires investment for capacity expansion. Exporters are exploring markets in the US for which such assistance is required,” Council for Leather Exports chairman Mukhtarul Amin said.
Most of the leather units are located in Agra, Chennai, Jalandhar, Kanpur and Kolkatta. It is an employment-oriented industry providing jobs to around 5.5 million people.