The Hindu : Business : Rs. 912 cr. scheme for leather sector

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Friday, Aug 15, 2008
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Rs. 912 cr. scheme for leather sector

Special Correspondent

Additional Central assistance for Sikkim, Puducherry
IIFCL can borrow up to $5 billion from Reserve Bank

NEW DELHI: The Central Government on Thursday cleared the Rs. 912-crore scheme for development of infrastructure for the leather industry in the XI Plan.

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,” Union Information and Broadcasting Minister Priyaranjan Dasmunsi told reporters here after the Cabinet meeting. The Indian leather industry, estimated to be Rs. 40,000 crore, is growing at a rate of 20 per cent. Exports constitute around Rs. 15,000 crore of the total basket and have been growing by 13-15 per cent.

The Union Cabinet also approved the increase in the authorised capital of India Infrastructure Finance Company Limited (IIFCL) from Rs. 1,000 crore to Rs. 2,000 crore.

It will enhance the leveraging ability of IIFCL and will enable the company to build a strong resource base along higher net worth over a period, Mr. Dasmunsi said.

Another major decision cleared by the Union Cabinet was for grant of additional central assistance to the Sikkim and Puducherry governments for long-term reconstruction of the infrastructure damages during floods in 2005, at a total cost of Rs. 115.71 crore during 2008-09 with a grant component of Rs. 84.87 crore and a loan component of Rs. 30.84 crore. This will enable the two governments to undertake long-term reconstruction of the damaged infrastructure.

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