The Government is expected to announce an incentive package for labour intensive leather sector in the forthcoming Budget with a view to give a boost to the segment and generate jobs. The commerce and industry ministry has asked its finance counterpart to give financial assistance for the Indian leather Development Programme (IlDP) and for setting up of mega leather clusters in the country, an official said.
As the IlDP, which is a central sector scheme, has provided huge support to the sector, the finance ministry may consider extending it for three more fiscals. It will end by this fiscal. The commerce ministry has asked for about Rs7,000 crore for this programme for three years.
“The incentives are asked broadly on the lines of the package announced for the textiles sector. Presentations have already been given to Prime Minister's Office and the Finance Ministry,” the official said. The industry has also demanded cut in excise duty to 6 per cent from 12 per cent for non-leather products like footwears till the Goods and Service Tax comes into force.