sub-scheme of the Indian Footwear and Leather Development Programme(IFLDP)
India is a global footwear and leather goods hub. The country’s high-quality and market-competitive products are in great demand in the international market. India has retained its position as one of the top 10 footwear-producing countries in the world. The sector also contributes significantly to India’s export earnings. Nowadays, there are a lot of developments in terms of technology as well as consumer preferences. There is a huge demand in the international market for quality leather and footwear products which also has given rise to some major players in this industry. Indian companies have emerged as major suppliers to their global counterparts with an increased focus on quality and efficiency improvement. Companies are required to be more responsive to the changing needs of consumers if they are going to stay competitive in this highly competitive industry. Design studios in the leather and footwear sector have undergone a paradigm shift over the past couple of decades. It goes back to a time when the sales were mostly done offline. Today, online sales are a part of a modern firm’s DNA. The industry has witnessed sudden changes in the kind of designs that clients look for.
Objective of the Scheme
The objective of the development of design studios in the footwear and leather sector is to provide design services, pattern-making, and at least prototype production facilities to serve as a resource center for the latest information on fashion/market trends, colors, and designs. The studios will also promote marketing/export design. Studios should act as a catalyst for entrepreneurship, by providing wider access to market information, and more effective connections between entrepreneurs and potential financiers. It should provide designers with access to consumers and potential suppliers. Design studios would provide support for the success of new designs by financing the production of samples (prior to market entry). They can also facilitate local processing by connecting entrepreneurs with the small-scale process and finishing units.t linkages, facilitates buyer-seller meets and international buyer interface for trade fairs.
The Scheme Output will Conclude:
- Providing Design Support
- Technical assistance and advancement
- Providing opportunities for employment and business
- Dovetailing contemporary designs with artisans’ skills
- Providing incubation facilities to the rising entrepreneurs
- Assisting in certification
Eligibility of the Scheme
- The eligible beneficiaries of the scheme can be institutes of similar standing of the
- Footwear Design and Development Institute
- Central Leather Research Institute (CLRI)
- National Institutes of Design (NID)
- National Institute of Fashion Technology (NIFT)
- India Brand Equity Foundation (IBEF)
- Indian Institute of Foreign Trade (IIFT)
- The government has also identified large units as well as groups of the industry as beneficiaries under the sub-scheme.
Project Cost and Implementation
- With an outlay of Rs. 100 Crore of the entire project, the Government will contribute half the total project cost, as approved by the Steering Committee.
- The Government’s contribution is restricted to Rs 10 crores per Design Studio.
- The share of the beneficiary would be balanced at 50% of the project cost.
Note: Any financial assistance won’t be provided for the construction of infrastructure or the purchase of land as well as recurring cost funding.
The Projects Implementation Unit (PIU) will be appointed for the sub-scheme by the Empowered Committee. The beneficiary will have to compile and submit a Detailed Project Report( DPR) along with financial implementations through the Project Implementation Unit (PIU). The PIU will appraise the DPR submitted by aspiring beneficiaries and recommend the eligible cases to the Steering Committee. The PIU will also periodically review and present to the Steering Committee information on how much money has been allotted to each beneficiary and how well they have used it.
Subsidy Release
The eligible industry/beneficiary must maintain exclusive project-specific TRAs with any nationalized bank as mentioned above and the government will ensure that funds from the Government will be released into that account. The entire amount of disbursal will proceed in 3 phases as follows:
1st Installment: For a project on producing the statement of project-specific TRA reflecting the proportionate contribution (i.e., 30% of the share of Industry/Beneficiary) deposited by Industry/Beneficiary in the TRA, industry and other beneficiaries are to provide advance assistance of 30% of this proportionate share in cash or in kind.
2nd Installment: After the utilization of the previous installment, 40 percent of the share of industry or beneficiary in the TRA will be remitted as a second installment. The government will disburse a proportionate share of 40% of the assistance after the utilization of the previous installment as a second installment to the Industry/Beneficiary on the presentation of a statement of project-specific TRA.
3rd Installment: After the utilization of the previous installment, 30 percent of the share of industry or beneficiary in the TRA will be remitted as a second installment. The government will disburse a proportionate share of 30% of the assistance after the utilization of the previous installment as a second installment to the Industry/Beneficiary on the presentation of a statement of project-specific TRA.
How to Apply
You can apply for the scheme through the official website of DIPP (Department of Industrial Policy and Promotion).
Development of Design Studios in Footwear and Leather Sector Details
Collateral Security: As per Norms
Processing Fees: As per Norms
Scheme Validation: Active till 2026