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Maharashtra granted approval for mega leather footwear and accessories cluster park in Raigad, ET Retail


<p>Representative Image</p><p><strong><em></em></strong></p>
Representative Image

Mumbai: The Department for Promotion of Industry and Internal Trade (DPIIT) has granted Maharashtra an in-principal approval to establish a Mega Leather Footwear and Accessories Cluster Park in Ratwad, located in the Raigad district in Konkan.

The allocation of grants for such a cluster signifies Maharashtra’s growing strength in the sector and would further revolutionize the state’s leather sector, enabling the state to take a leading position in footwear and apparel exports, said an industries department release.

The Mega Leather Footwear and Accessories Cluster Park measuring 151 acres is expected to serve as a hub for the leather industry collaboration, innovation, and growth by integrating manufacturers, suppliers, designers, and artisans.

Maharashtra currently ranks 8th among largest producer and exporter of leather goods in the country. The Jawaharlal Nehru Port Trust (JNPT) alone contributes to 21% of the nation’s leather exports, highlighting the state’s crucial role in the industry. The labor-intensive nature of the leather industry and its substantial multiplier effect makes it a catalyst of employment generation, with a focus on benefiting the weaker sections of society.

“Furthermore, leather sector holds immense potential for empowering women and engaging the youth. The establishment of the Mega Leather Footwear and Accessories Cluster Park in Raigad will mark a milestone in Maharashtra’s economic growth trajectory. This ambitious project will unleash a tremendous employment opportunity, strengthen the leather sector ecosystem, and foster the state’s overall economic prosperity,” the release stated.

The scheme ‘Indian Footwear and Leather Development Programme (IFLDP)’ has financial outlay of INR 1700 crore until March 31, 2026. As a sub-scheme of IFLDP, the ‘Mega Leather Footwear and Accessories Cluster Development’ (MLFACD) scheme aims to develop Leather Industries clusters to integrate forward and backward linkages and capitalize on economies of scale.

Maharashtra Industrial Development Corporation, on behalf of the state, has already submitted a proposal to develop a 151-acre Mega Leather Footwear and Accessories Cluster in Ratwad, Raigad District, under the MLFACD scheme. The National Productivity Council (NPC) appraised the proposal submitted by the state. The Government of India will provide financial grants up to INR 125 Cr for this project.

The MIDC is collaborating with Council of Leather Export (CLE) and Leather Industry development Corporation Maharashtra (LIDCOM) in the state to conduct the market research and stakeholder outreach for leather cluster development. Key highlights of the leather cluster include its proximity to Dighi Port, ample access to power, water and CETP infrastructure and an existing industrial ecosystem. In addition, a logistics park is also proposed near the site which will enable strong connectivity linkages and quicker fulfillment times.

“The establishment of the Mega Leather Footwear and Accessories Cluster Park in proximity to Mumbai will provide a major boost to the sustainable leather industry in the state. With JNPT port accounting for 21% of the country’s leather exports, this strategic location will reduce logistics costs and time, leading to an enhancement in export capabilities,” the release stated further.

“This initiative reflects Maharashtra’s commitment to fostering economic growth, driving employment opportunities, and propelling the leather sector to new heights. The Mega Leather Footwear and Accessories Cluster Park in Ratwad will serve as a catalyst for the state’s continued success in the global leather market,” it added.

  • Published On Jun 30, 2023 at 02:07 PM IST

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