Notification regarding Mega Leather Cluster Scheme dated 20-03-2012 - Indian Laws - No.514/2011

(To be published in the Gazette of India, Part-I, Section-I) Government of India Ministry of Commerce Industry Department of Industrial Policy Promotion New Delhi, the 20th March, 2012 NOTIFICATION No.514/2011-Leather- The Central Government has approved a sub-scheme titled Mega Leather Cluster with an allocation of ₹ 600 crore (Rupees six hundred crore) under Indian Leather Development Programme (ILDP) for implementation during the remaining period of 11th Plan and 12th Plan period. The Mega Leather Cluster (MLC) subscheme will replace the erstwhile scheme of Leather Parks under Indian Leather Development Programme (ILDP). 2. The Scheme targets industrial clusters/locations with high growth potential, which require strategic interventions by way of providing world-class infrastructure support. The project various infrastructure developments like Core Infrastructure, Special Infrastructure, Production Infrastructure, HRD Social Infrastructure, R D infrastructure Export Services related infrastructure. 3. The Government of India would provide assistance limited to 70% of the project cost as grant in aid for all components of the project, except the cost of the land, subject to a maximum ceiling of ₹ 125 crore per cluster. The cluster should have a minimum area of 40 acres of land. The graded structure of Government grant would be provided depending on the area of land in the cluster which is as under:- (a) MLC of 4060 acres land Gol assistance limited to ₹ 50 crore; (b) MLC of 61100 acres land- Gol assistance limited to ₹ 70 crore; (c) MLC of 101150 acres land- Gol assistance limited to ₹ 105 crore; (d) MLC of more than 151 acres land- Gol assistance limited to ₹ 125 crore. 4. A Special Purpose Vehicle (SPV) will have to be set up by entrepreneurs for development and management of park. The Government of India would approve the project submitted by SPV who would be the recipient of the assistance under the scheme. The SPV would have to bring in 30% of the project as cash contribution apart from the land itself at its own cost. The SPV will be a company registered under the Companies Act, 1956 formed by the stakeholders, particularly a group of willing entrepreneurs (minimum being 7 legally independent companies) that are engaged in the leather sector. The net worth of each of the entrepreneurs or legally independent units has to be at least ₹ 1 crore and the combined net worth of the seven promoters forming the SPV should be at least ₹ 10 crore. The share of any individual/group of entities shall be less than 25% of equity of SPV to ensure widely spread ownership and to preclude domination. 5. The Government will engage the services of a professional agency as PMC, which has proven experience in developing, financing appraising and executing industrial cluster infrastructure in the implementation of the scheme, right from the stage of approval of DPR to commissioning of the project. 6. The sub-scheme is applicable all over India. The guidelines of the scheme are available on the website of the Department (www.dipp.nic in). Interested leather entrepreneurs can submit preliminary proposal under the scheme as detailed in the guidelines directly to the Department for approval. (Gurpreet Gadhok) Under Secretary to the Government o of India To The Manager Government of India Press Faridabad