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Home » Sustainable Technology and Environmental Promotion (STEP) sub-scheme of Indian Footwear and Leather Development Program

Sustainable Technology and Environmental Promotion (STEP) sub-scheme of Indian Footwear and Leather Development Program

The leather industry and tanning activity in particular, all over the world, is linked to environmental concerns. Environmental issues are steadily gaining ground and as industries cope with the stringent norms, it is necessary to ensure zero pollution of any kind. However, as environmental issues are a point of concern for sustainability; this is one issue that needs better research and endeavours in the future. The officials linked to industries are well aware of the large number of effluents discharged by their establishments. The leather industry is arguably the most polluting industry in existence. It is also likely to grow to be the second-largest polluter in India over the next year or two. Despite improving their methods of waste management, tanneries still dump huge amounts of untreated waste into the rivers, lakes, and other water bodies that directly impact the environment in a negative way. In order to address this issue, the Department for Promotion of Industry and Internal Trade (DPIIT) has launched the Sustainable technology and environmental promotion (STEP) a sub-scheme of Indian Footwear and Leather Development Program to ensure the continuity of their business and environmental protection.

In this scheme the assistance would be provided in two ways:

  • Establishment or Upgradation of Common Effluent Treatment Plants (CETPs)
  • Preparation of vision document for the Footwear and Leather Industry
  • Establishment or Upgradation of Common Effluent Treatment Plants (CETPs)

Objective

Considering the growth of the leather industry and the emission norms for pollutants, this component envisages financing Common Effluent Treatment Plants for leather clusters in states where existing installations have inadequate capacity, and are not in a position to meet prescribed norms, or have no CETP at all.

Along with the general provisions for upgrading existing CETPs, special consideration will also be given to handling salinity issues, including a possible alternative of disposing of waste into a saline stream or sea after appropriate treatment, and sludge management in all CETPs in compliance with current regulations on hazardous waste management.

The following activities will be covered under this scheme:

  • Establishment/expansion /up-gradation of CETPs
  • Upgradation of constituent Primary Effluent Treatment Plants(ETPs) attached to referred CETP
  • Constructing secure landfills
  • Recycling of waste into some products
  • Implementing some other techniques for risky waste management
  • No provision shall be made by SPV for the up-gradation of individual tanneries.

Component Cost

The Central Government’s contribution to this scheme would be 80% of the total project cost in North-Eastern Areas and 70% of the total project cost in other areas, with a cap of Rs.200 crore. The industry/beneficiary share would be 20% of the project cost in North-Eastern Areas and 30% of the total project cost in other areas.

Component Release

The Special Purpose Entity will be obligated to maintain a project-specific Trust and Retention Account in any nationalized bank. After the approval of the proposal, the Government will release its share of assistance into this account in four phases, according to the following schedule:

First Instalment: As an advance token, 25% of the assistance will be granted on final approval of the project, after the financial closure of the project. Also after the acceptance of the award of contracts of the entity by the contractor, and on producing the statement of project-specific TRA reflecting the proportionate contribution deposited by SPV in the TRA.

Second Instalment: In the second installment 25% of the assistance will be granted, after the right utilization of the previously given installment. The 2nd installment will be only released upon producing the statement of project-specific TRA reflecting the proportionate contribution deposited by SPV in the TRA.

Third Installment: In the 3rd installment 25% of the assistance will be granted after the utilization of the previous installments. The 3rd installment will be only released upon producing the statement of project-specific TRA reflecting the proportionate contribution deposited by SPV in the TRA.

Fourth Installment: In the last installment the left 25% of the assistance will be granted after the verified utilization of the previous installment and on producing the statement of project-specific TRA reflecting the proportionate contribution deposited by SPV in the TRA (i.e. 25% of the share of the entity as 4th installment and 75% of the share should be of the State Government each).

  • Preparation of vision document for the Footwear and Leather Industry

Objective

As a product, the leather and footwear industry is an important contributor to the manufacturing sector of India. However, the per capita consumption of footwear in India is relatively modest as compared to what it is globally. The objective of the component of this scheme is to prepare a vision document for the Indian Footwear and Leather Sector. It serves as a guideline for the technological developments and policy directives in the sector. Besides, it also aims to extend support to national-level industry bodies for ensuring focus on a vision for the sector.

Component Cost

The vision document will be prepared in stakeholder consultations, with the views of industry bodies taken into account. The stakeholders of this project will be consulted to gather their ideas and opinions on how the vision document should be prepared. The government of India offers 100% financial assistance for this project under its one-time grant-in-aid program, subject to a maximum limit of rupees 5 crores.

Component Release

The Government of India will provide 100% of the project cost as a one-time grant to each institution, subject to a maximum limit of Rs. 5 crores, if you prepare and submit a vision document. After the successful completion and submission of the document the funds will be released in two installments:

  1. 50% of the total cost will be disbursed after approval of the project by the Steering Committee
  2. 50% of the total cost will be disbursed after utilization of the earlier release and completion/acceptance of the submitted report by the Steering Committee.

Sustainable Technology and Environmental Promotion (STEP) Details

Collateral Security: As per Norms

Processing Fees: As per Norms

Scheme Validation: Still Active

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