Indian Leather Development Programme

The Indian Leather Development Programme was a Central Sector Scheme of the Government of India, implemented through the Council for Leather Exports and relevant agencies, aimed at capacity creation, modernisation, technology up-gradation and employment generation in the leather and leather-products sector. It addressed tanning, footwear, leather goods, saddlery and allied segments. Over time, the scheme evolved into or was succeeded by the Indian Footwear and Leather Development Programme for the period 2021-26. For you as an MSME in this sector, the scheme provided subsidy and grant support to upgrade plant and machinery, adopt improved processes, enhance capacity and meet environmental/compliance requirements.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process for the Scheme

Key Features

Sub-schemes covering multiple leather value-chain segments: The ILDP consisted of components such as “Integrated Development of Leather Sector ”, “Human Resource Development”, “Mega Leather Clusters”, “Leather Technology, Innovation & Environmental Issues”, and “Establishment of Institutional Facilities”.
Financial assistance for plant & machinery cost: The scheme offered grant-in-aid for purchase of new plant & machinery , for expansion, modernisation or new units.
Higher assistance to MSMEs and to specified regions: Micro, Small and Medium Enterprises were eligible for higher percentage assistance; for example under the sub-scheme guidelines assistance may be 40% of plant & machinery cost for MSME units, and lower for other units.
Support also for environmental / pollution control infrastructure: The scheme included support for establishing/upgrading CETPs , land-fills, sludge management in leather clusters.
Cluster development approach and support for mega-clusters: Mega Leather Footwear & Accessories Clusters were supported under the scheme for infrastructure, to bring multiple units together and improve competitiveness.
Support for institutions and skill development: Under the scheme, institutional facilities (e.g., campuses of the Footwear Design & Development Institute – FDDI) were upgraded, and training for workers in the leather sector was supported.

Financial Assistance

Component	Assistance Provided	Detailed Explanation & Example
Investment Grant for Plant & Machinery	For eligible units: MSMEs may get up to 40% of cost of plant & machinery; other units lesser; subject to ceilings.	For example: If an MSME leather goods unit buys new machinery costing ₹ 1 crore, it might be eligible for a grant of up to ₹ 40 lakhs (40% of cost), subject to scheme caps and approval.
Ceilings / Caps	The assistance is subject to a ceiling (e.g., up to ₹ 15 crore under certain sub-scheme cost of plant & machinery)	If the allowable cost of plant & machinery is ₹ 20 crore but scheme cap is ₹ 15 crore, grant is calculated on the capped amount.)
Additional Incentive for Domestic Machinery	Additional 5% assistance may be provided if the machinery is domestically manufactured.	If out of the ₹ 1 crore machinery cost, ₹ 80 lakhs is domestic machinery, extra incentive of 5% on that portion may apply (₹ 4 lakhs extra).
Infrastructure / Cluster Support	Grant support for clusters, CETPs, environmental infrastructure up to defined percentage of project cost.	For example, a leather cluster may receive assistance for CETP setup say 30-50% of cost so that many units benefit from shared infrastructure.

Eligibility Criteria

Who can apply:

Existing leather/leather products/footwear/harness & saddlery units that are undertaking modernisation, expansion or technology up-gradation on or after 1 January 2020 for newest sub-scheme.
New units in eligible segments may also apply provided they fulfil registration, environment norms, land/plant setup.
Units must purchase new plant & machinery .
Projects must lead to demonstrable increase in employment and/or production capacity or better pollution compliance.

Who cannot apply:

Units that utilise second-hand machinery are not eligible.
Projects which have already commenced before the specified date may not qualify. For example, under sub-scheme only machinery bought/installed from 1 Jan 2020 onwards are eligible

Documents Required

Application form
Project report / cost estimate / machine list with quotation
Company/Unit registration certificate, MSME/Udyam Registration if applicable
Audited financial statements or projections
Land/plant premises details, environmental clearance/NOC
Bank sanction letter
Machine installation and commissioning certificate
Proof of employment generation and compliance documents
Declaration certificate of not availing second-hand machinery, etc.

Application Process for the Scheme

Option 1: Apply with Bullit

Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.
Recommended for: Businesses seeking guided support especially for cluster/infrastructure or brand projects.

Option 2: Official Route

Visit the DPIIT / scheme portal and review the guidelines for the relevant sub-scheme .
Prepare your project proposal: define objectives, cost-benefit, product/value-chain, location, environmental plan, user units etc.
Submit application in the prescribed format via the National Single Window System under “Indian Footwear and Leather Development Programme”.
The scheme’s Steering Committee/ Empowered Committee evaluates the proposal, sanctions grant/assistance subject to criteria and project agreement.
Execute project as per approved DPR, meet milestones, submit utilisation certificates, maintain operations per guidelines.

Option 3: Through Cluster/Nodal Agency
If you are part of a leather/footwear cluster , you may apply via state nodal agency which may have facilitation support for applications, co-ordination and subsidy release.