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Cabinet meet: Govt nod to Rs 2,600-crore fund for leather, footware sector

In a separate decision, the government also approved capital investment subsidy amounting to Rs 264.67 crore to four industrial units located in North-East, including Sikkim.

cabinet meeting, narendra Modi, Leather products, footwear, funds for footwear, Arun jaitley, Business news, The decision was taken at a meeting of the Union Cabinet chaired by Prime Minister Narendra Modi. (Representational photo)

The Union Cabinet on Friday gave nod to a Rs 2,600 crore special package for employment generation in the leather and footwear sector, which has the potential to generate 3.24 lakh jobs in three years and assist in the formalisation of 2 lakh jobs.

The decision was taken at a meeting of the Union Cabinet chaired by Prime Minister Narendra Modi.

The package involves implementation of central scheme ‘Indian Footwear, Leather & Accessories Development Programme’, with an expenditure of Rs 2,600 crore during 2017-18 to 2019-20. “The scheme would lead to development of infrastructure for the leather sector; address environmental concerns specific to the leather sector and facilitate additional investments, job creation and production,” the government said.

Moreover, the enhanced tax incentive would attract large-scale investments in the sector and reforms in labour laws in view of seasonal nature of the sector will support economies of scale, it said. The package has the potential to generate 3.24 lakh new jobs in three years and assist in the formalisation of 2 lakh jobs as cumulative impact in footwear, leather and accessories sector.

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In a separate decision, the government also approved capital investment subsidy amounting to Rs 264.67 crore to four industrial units located in North-East, including Sikkim. The decision was taken at a meeting of the Cabinet Committee on Economic Affairs.

“The grant of subsidy to the industrial units will not only provide incentives to the operational units but also boost confidence of existing investors as well as potential investors in the states of North Eastern Region (NER),” an official statement said.

The four industrial units are located in North Eastern Region (NER) including Sikkim. The subsidy has been granted under the Central Capital Investment Subsidy Scheme (CCISS), 2007 of the North East Industrial Investment and Promotion Policy (NEIIPP), 2007. The Centre has been implementing this scheme to promote industrialisation in the North-East.

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“The CCEA has also revised financial powers for approval of capital investment subsidy claims up to Rs 500 crore which will be now approved by the Minister of Commerce and Industry. This will facilitate expeditious settlement of claims,” the statement said.

The Cabinet also cleared the continuation of the existing Non Lapsable Central Pool of Resources (NLCPR) scheme with funding pattern of 90:10 till March, 2020 with an outlay of

Rs 5,300 crore. It would enable completion of ongoing projects. For North East, the government also approved the introduction of new Central Sector Scheme of “North East Special Infrastructure Development Scheme” (NESIDS) from 2017-18 with 100 per cent funding from the Central Government to fill up the gaps in creation of infrastructure in specified sectors till March, 2020.

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In another decision, the Cabinet approved the continuation of Centrally Sponsored Scheme of National Ayush Mission (NAM) from April 2017 to march 2010 with an outlay of Rs 2,400 crore over the 3 year period. The Mission was launched in September, 2014.

First published on: 16-12-2017 at 06:09:07 am
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