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Integrated Development of Leather Scheme (IDLS)

 

The IDLS or Integrated Development of Leather Scheme is an initiative from the Government of India. It was launched by the Department of Industrial Policy and Promotion (DIPP) in December 2017. The primary objective of this scheme is to upgrade the technology and production of the leather manufacturing industry. It is also aimed at encouraging entrepreneurs to set up and diversify new units in various areas as specified by the Government.

Objective

The scheme also has been announced with the objective of giving a fillip to formal employment opportunity in the leather industry which is very labour-intensive.This scheme is being implemented with a paperless system and it uses online portal and has the facility for the active interface of PIU (Project Implementation Unit), DIPP (Department of Industrial Policy and Promotion) and the various units that are stakeholders under this scheme

Two Arms of DIPP

CLRI and FDDI are the two arms of DIPP (Department of Industrial Policy and Promotion). They are working in tandem as Project Implementation Units (PIU) for the IDLS or Industrial Development of Leather Sector for a three year period of 2017 to 2020. It will be essentially for the tanneries and other related product units. The product units include leather and non-leather footwear, leather goods, footwear components, leather garments accessories amongst others.

Eligibility Criteria

  • The scheme is open to all existing units in the Footwear, Leather and other accessories including tanneries, saddlery, leather goods, leather footwear, footwear component sector and non-leather footwear.
  • The units should have a cash profit for 2 years. They also should be continuously undertaking successful and bankable programs on technology up-grading on or after January 1, 2016.
  • The scheme also is open to new units provided they meet certain criteria. The new units seeking assistance under the Integrated Development of Leather scheme would be considered only if the project is evaluated and appraised. It should be found to be bankable and viable by the bank that will be providing the GOI assistance.
  • In case the units are capable of self-financing, then the project viability will be done based on the strength of the working-capital of such units.

Other Requirements

The applicants seeking financial and other assistance under the above program should provide below-listed documents

  • EPFO registration details of existing employees.
  • If there are any modernization programs that have been funded by Scheduled banks for certain units, these units will also fall under the purview of this assistance program.
  • Units that are running various programs from their own resources will also be eligible for assistance under IDLS.
  • The scheme is open only to those leather and other allied units that have availed financial assistance from Scheduled banks for the purchase of new machinery. Units that have bought second-hand units and machinery will not fall under the purview of this scheme. This is because the program is only to support those who are keen on technology upgrading and modernization.
  • The assistance under the scheme is also tied to the number of jobs the units would be able to create. For every Rs.1 Crore investment in Garment/Footwear and Saddlery sector, the unit should be able to generate 250 jobs.
  • For an investment of Rs.5 Crore with assistance under the above scheme, the unit should be able to generate 350 new jobs. This will be applicable for Tannery Units and it will be on a pro-rata basis depending upon the level of investment.
  • If the unit is a component or accessory one, then it should be able to create jobs for 150 people for the assistance of Rs.1 Crore under the above scheme.

Illustrative arrangement of documents

  • Covering letter
  • Company profile (detail mentioning the product manufactured, period of manufacturing, diversification if any, constitution, changes if any etc)
  • IDLS form I
  • SSI registration certificate (both old and new)
  • Loan sanction letter (for bank financed proposal)
  • List of existing facility
  • List of machine
  • Purchase order
  • Invoices/Proforma invoices
  • Chartered engineers certificate ( for 2nd hand m/c)
  • Affidavit • Partnership deed (old and new)/Memorandum of article including/Firm registration
  • change in the constitution/ take over deed
  • NOC/ST/VAT/Excise/Chartered civil engineers certificate (for new unit)
  • Balance sheet, form 3 CD