Investment grant to leather industries for upgradation

Operated by
Export Promotional Councils- CLE - Ministry of Commerce & Industry, Central Government
Purpose 
To provide investment grant to leather industries to enable them to upgrade themselves leading to productive gains, right sizing of capacity, cost cutting and design development.
Probable duration
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Eligibility

  •  All existing units in the Leather and Leather Products industry including tanneries, leather goods, saddlery, leather footwear and footwear component sector having cash profits for 2 years, undertaking viable and bankable programmes on technology up-gradation on or after 1st January 2011 are eligible for assistance

  •  Modernization programmes of the units funded by nationalized bank as well as those programmes undertaken by existing production units from their own resources will be eligible for assistance 

  •  New eligible units would be approved for assistance under the scheme only on submission of the copy of all the required registration, NOCs from all concerned Government Department for setting up of the unit, and when the factory building is ready for installation of plant and machine

Benefit Description

Investment Grant to leather industries to enable them to upgrade themselves leading to productive gains, right sizing of capacity, cost cutting and design development

Application process

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Other Details

Conditions if Any
  • The nationalized bank will get an agreement executed on behalf of Government of India with the industrial unit prior to disbursement of grant.
  • Grant will be released by the nationalized banks concerned only on arrival of machines at site and after execution of the agreement on behalf of the Government of India and will be limited to 30% and 20% of the cost of machines (for micro and small enterprises and other enterprises respectively as stated in the terms of agreement) subject to a ceiling of Rs.2 crore for each product line.
  • The Government Financial Assistance cannot be utilized for purposes other than for which it has been sanctioned.
  • The amount released by the Government cannot be utilized towards adjustment of default in repayment of principal and payment of interest by the borrower.
  • After completion of the modernization programme, the industrial unit will be required to submit a completion certificate to nationalized bank, PIU and DIPP (in the format to be decided by the Steering Committee). From the date of completion, up to two years, the industrial unit availing the Government Financial Assistance will be required to submit operational and performance details in form (as prescribed by the Steering Committee) to nationalized bank and PIU. PIU would appraise the Steering Committee of the same. In case the industrial unit becomes non-operational within two years of the receipt of Government Financial Assistance, it will be liable to refund the Financial Assistance availed, along with the interest to be charged from the date of closure till the date of refund at the prime lending rate of nationalized bank (as the case may be). In case of non compliance, the Bank concerned will take necessary legal action.
More Information
Annexure Link: -
Link: 
http://leatherindia.org/wp-content/uploads/2015/07/guidelines_idls-scheme11.pdf

File: -