PLI Scheme For Leather And Footwear Reaches Draft Cabinet Stage

(MENAFN- KNN India) New Delhi, Mar 24 (KNN) The government has informed the standing committee on commerce that the Production Linked Incentive (PLI) scheme for the leather and footwear sector has reached the draft Cabinet note stage.

Discussions about extending the scheme to this sector have been ongoing for some time, with an anticipated allocation of approximately Rs 2,600 crore as per Budget documents.

The FY26 Budget has also announced a focus product scheme for leather and footwear. This scheme will provide support for design, capacity, component manufacturing, and machinery required for producing non-leather quality footwear.

It is projected to create employment for 2.2 million persons, generate a turnover of Rs 4 lakh crore, and exports exceeding Rs 1.1 lakh crore.

Currently, the government is implementing the Footwear, Leather and Accessories Development Programme and the Rs 1,700-crore Indian Footwear and Leather Development Programme (IFLDP) for the period of 2021-26 through the Department for Promotion of Industry and Internal Trade (DPIIT).

The parliamentary panel was also informed that while extending the PLI scheme to include toys was previously under discussion, no action is currently ongoing or pending in this regard.

In lieu of a PLI scheme for toys, the Budget has announced a national action plan to position India as a global hub for toys.

According to the DPIIT's statement to the parliamentary panel, this plan will focus on developing clusters, skills, and manufacturing ecosystems to create high quality, unique, innovative, and sustainable toys under the 'Make in India' brand.

The standing committee, while commending the PLI scheme for its crucial role in manufacturing, has recommended its expansion into defense manufacturing, aerospace, and ship containers.

The PLI scheme, which was introduced in 2020 and subsequently expanded, now encompasses 14 sectors with a total outlay of Rs 1.97 lakh crore. Various sectors have expressed interest in being included in the scheme.

Since the scheme's inception, only Rs 14,020 crore of incentives have been disbursed to units across 10 sectors. However, the government anticipates a significant increase in disbursements in the coming year as more eligible units commence production.

The Ministry of Commerce and Industry stated on Saturday that projects are typically implemented over a two to three-year period, depending on the nature of manufacturing, with claims usually being filed after the first year of production.

Most projects are currently in the implementation stage and will be submitting incentive claims in due course.

(KNN Bureau)

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