Active Stocks
Thu May 30 2024 11:53:51
  1. Tata Steel share price
  2. 166.40 -4.48%
  1. NTPC share price
  2. 362.90 -0.47%
  1. State Bank Of India share price
  2. 823.95 0.12%
  1. Tata Motors share price
  2. 935.40 -0.87%
  1. Wipro share price
  2. 444.70 -1.38%
Business News/ News / India/  Tamil Nadu signs pact to invest 2,250 crore in leather sector

Tamil Nadu signs pact to invest ₹2,250 crore in leather sector

Tamil Nadu government inks pact for ₹2,250 crore investment in leather sector and launched state footwear policy in the Footwear and Leather Sector Conclave on Tuesday. The policy will aim to boost leather as well as non-leather footwear industry in the state

Tamil Nadu CM MK Stalin launched ‘Tamil Nadu Footwear and Leather Products Policy 2022’ and signed MoU with five companies to mark investment of ₹2,250 crore, in the Footwear and Leather Sector Conclave on Tuesday (@CMOTamilnadu/Twitter)Premium
Tamil Nadu CM MK Stalin launched ‘Tamil Nadu Footwear and Leather Products Policy 2022’ and signed MoU with five companies to mark investment of 2,250 crore, in the Footwear and Leather Sector Conclave on Tuesday (@CMOTamilnadu/Twitter)

India's leading exporter in the leather industry, Tamil Nadu, has announced an investment of 2,250 crore in the footwear and leather sector and launched an annual policy for the industry in Tamil Nadu Footwear and Leather Sector Conclave 2022 on Tuesday.

The state government signed five memoranda of understanding(MoUs) for the investments in the presence of CM MK Stalin who launched the 'Tamil Nadu Footwear and Leather Products Policy 2022'. The government has signed MoUs with five firms that include KICL SEMS, Wagon International, KICL, Walkaroo, and KICL (footwear cluster). The step will help the sector in attracting 20,000 crore investment by 2025 and generate employment for 2 lakh people.

Along with the launch of the annual policy and signing of MoU, CM laid the foundation stone for a 400 crore mega footwear manufacturing park at Panapakkam, Ranipet.

In the program, Tamil Nadu CM expressed his confidence that the measures taken in the coming time will transform Tamil Nadu into the most favoured destination for the manufacturing of footwear and leather products in Asia. Moreover, he appealed to the industries to popularise 'Make In Tamil Nadu' products at a global level.

"To achieve the USD 1 trillion economy by 2030, Tamil Nadu should attract capital-intensive high-tech industries and employment-intensive industries," said MK Stalin

Also Read: Stalin says free bus service is not freebie, calls it economic revolution

Tamil Nadu: A hub of global footwear brands

It is worth noting that the state is associated with several global fashion brands like Louis Vuitton, Giorgio Armani, Gucci, Clarks, Cole Haan, Daniel Hechter, Bugatti, Prada, Zara, Coach, Tommy Hilfiger, Hush Puppies, Ecco, Johnston & Murphy, Hugo Boss, Pierre Cardin, etc. These brands have established their manufacturing industry mainly in Tamil Nadu and many of them acquire the raw materials for the manufacturing from the state only.

"The state accounts for a fairly large number of footwear and leather manufacturing units in India. Leather goods made in Tamil Nadu have great demand in the international market," the Chief Minister said while presiding over the event. Ambur, Ranipet, Vaniyambadi, Vellore, Peranampattu, Tiruchirappalli, Dindigul, Erode, and Chennai are among the major centres for leather and leather goods production. He also informed that Tamil Nadu is the only state in the country to implement Zero Liquid Discharge in tanneries.

As per the policy document, "The state has a well-established industrial ecosystem of high-performing sectors such as electronics, textiles, information technology, auto-mobiles, and auto-components." The policy will lay special emphasis on enhancing the productivity of existing players and bolstering the industry ecosystem in the state. Ultimately, it will help in making Tamil Nadu the most favoured destination for footwear exporters.

Also Read: TN SSLC Supplementary Results 2022 likely to be declared on this date. Here's how to check

Tamil Nadu contributes 26% to national manufacturing output

Being a leading contributor to India's leather products exports, Tamil Nadu is known for its traditionally crafted leather products. Moreover, the state has shown huge progress in the growth of the footwear sector. Its contribution to the national manufacturing output has increased to 26% and enjoys a share of 48% of the national exports.

The existing footwear manufacturing clusters in Tamil Nadu can be leveraged to address the growing domestic demand and export requirements for footwear, the policy stated. It also aims to launch clusters, parks and common facilities to strengthen the industrial infrastructure in the state. This will help the state in building a conducive ecosystem and a strong supply chain for the footwear manufacturing industry.

Policy to focus on leather as well as non leather industry in TN

Instead of focusing only on the leather footwear industry, the policy opted for a wider scope of employment generation by enhancing the non-leather footwear and component ecosystem. To achieve this, it will support the ancillary units besides encouraging exports.

Due to this, other associated industries will be eligible for certain subsidies in the coming time. Industries allied to footwear manufacturing or component industries located outside the clusters are eligible for a Fixed Capital Subsidy (FCS) of 10 percent of investment in eligible fixed assets to be disbursed in 10 equal annual instalments.

Companies can avail of this subsidy by showing their eligibility in terms of the scale of production, investment, or the number of employment it generates. The minimum eligible investment threshold for the companies is 150 crore and the minimum employment threshold is 100 jobs.

With inputs from PTI

You are on Mint! India's #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 23 Aug 2022, 06:38 PM IST
Next Story footLogo
Recommended For You