New Delhi : The government on Friday announced a Rs 2,600-crore package for the leather industry in a move aimed at increasing employment and investment in the sector.
After being pushed back twice earlier, the proposal was approved by the Cabinet on Friday and aims to provide, through tax and non-tax incentives, jobs to 324,000 people in the industry over the next three years. The incentives include enhanced funding for skill development and technological upgradation apart from introduction of fixed-term employment and government contribution to employees provident funds in the footwear and accessories segments.
In terms of financial allocation, for skilling, Rs 700 crore has been set aside for placement-linked skill development training for almost 432,000 people over the next three years. This includes Rs 15,000 per person for skill upgradation of an unemployed person. Employees and trainers will receive Rs 5,000 and Rs 2 lakh each, respectively.
The largest chunk has been reserved for technology upgradation. “Leather manufacturing units classified as highly polluting will be provided 70 per cent of the project cost of setting up common effluent treatment plants,” an official said. He added the Rs 782 crore set aside for this purpose over the next three years was expected to upgrade almost 70 per cent of all polluting units in major industrial clusters.
Also, in line with a similar package for the textile industry, the government has decided to introduce fixed-term employment in the industry under the Industrial Employment (Standing Orders) Act, 1946. The package also includes measures for simplification of labour laws.
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