Leather industry seeks Rs 700 cr from state for 12th plan

Chennai:

The leather industry would urge Tamil Nadu government to allocate Rs 700 crore for the leather sector under the 12^th plan outlay, according to chairman of Council for Leather Exports M Rafeeque Ahmed.

Speaking to reporters after the inauguration of the India International Leather Fair at Chennai Trade Centre by Union Minister of state for Finance S S Palanimanickam, he said the industry would be submitting the proposal soon to the state government.

Earlier, Ahmed urged the Union government to substially enhance the financial outlay under the 12^th plan.

He said the Council of Leather Exports in conjunction with National Skill Development Corporation will soon be setting up a Sector Skill Council for leather industry which will provide about two million trained workforce for leather industry by 2020 and will also facilitate the development of content and curriculum for about 50 identified shop floor level operations.

He also urged the Union Minister to include implementation of two per cent interest subvention on rupee export credit  for entire leather sector, provision of service tax exemption on tanning operations and for the operations of Combined Effluent Treatment Plants (CETP), setting up a fund of Rs 90 crore for construction of Women’s hostels or dormitories and enhancement of duty free limit under duty free import scheme from 3 per cent to five per cent in the national budget.

The fair has attracted 425 exhibitors, including 139 from 23 countries, in an area of 9,500 square metre which highlighted that IILF has retained its position as one of the largest exhibition in Asia, he said.

Currently, the total exports of leather and leather exports is $2,741.48 million as per the figures available from April to October 2011 of which the leather footwear constitutes $957.79 million.

Palanimanickam said the Union government accords high priority to leather sector and the sector has substantial potential for employment generation. Rita Menon, the chairman and managing director of India Trade Promotion Organisation also spoke on the occasion.

Box:

The India International Leather Fair had few anxious moments when a group of 25 people belonging to a pro-Tamil organization protested over the hoisting of Sri Lanka flag in the Chennai Trade Centre.

The group belonging to Tamizh Vazh Urimai Katchi were arrested by the police just before the inauguration of the function by Union minister of state for Finance SS Palanimanickam.