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By
Fibre2Fashion
Published
Aug 26, 2022
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India’s Tamil Nadu unveils footwear, leather goods policy; inks 5 MoUs

By
Fibre2Fashion
Published
Aug 26, 2022

Chief minister of India’s Tamil Nadu state M K Stalin recently unveiled the 'Tamil Nadu Footwear and Leather Products Policy 2022' as the state government signed five memoranda of understanding (MoUs) for investment worth ₹2,250 crore in the footwear and leather sector. The policy aims at attracting ₹20,000 crore in investment in the leather sector by 2025 and in creating jobs for 2 lakh.



The state signed the MoUs with KICL SEMS, Wagon International, KICL, Walkaroo and KICL (footwear cluster) to generate 37,450 jobs.
Requesting industry representatives to globally popularise products made in Tamil Nadu, Stalin said the policy would transform the state into the most favoured destination for manufacturing footwear and leather products in Asia.
The chief minister was addressing the Tamil Nadu Footwear and Leather Sector Conclave 2022.
He also laid the foundation stone for a ₹400-crore mega footwear manufacturing park at Panapakkam, Ranipet, according to media reports from the state.
The policy will increase the productivity of existing players. Tamil Nadu has emerged as a natural leader in the footwear segment, contributing 26 per cent to the national manufacturing output and 48 per cent of the national exports.
The existing footwear manufacturing clusters in Tamil Nadu can be leveraged to address the growing domestic demand and export requirements for footwear, the policy stated.
Apart from creating a conducive ecosystem and resilient supply chain for footwear manufacturing by supporting infrastructure in terms of clusters, parks and common facilities, the policy would enhance the non-leather footwear and component ecosystem by supporting the ancillary units besides encouraging exports.
Industries allied to footwear manufacturing or component industries located outside the clusters are eligible for a fixed capital subsidy (FCS) of 10 per cent of investment in eligible fixed assets to be disbursed in 10 equal annual instalments.
The company can choose to avail FCS from the date of commercial production or upon achieving the minimum eligible investment threshold of ₹150 crore and minimum employment threshold of 100 jobs, whichever is later, the policy document said.
The major centres for leather and leather goods production in the state are Vaniyambadi, Vellore, Tiruchirappalli, Ambur, Ranipet, Peranampattu, Dindigul, Erode and Chennai.

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