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Tamil Nadu launches Footwear & Leather Products Policy 2022

Wednesday, 24 Aug 2022
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Tamil Nadu government has launched Footwear & Leather Products Policy 2022. 
The policy will offer a special package for footwear and leather products (FLP) manufacture and incentives for FLP Design Studios. 
The State government inked memorandums of understanding (MoUs) with five companies namely -- KICL SEMS; Wagon International; KICL; Walkaroo and KICL (footwear cluster) with a total investment of Rs 2,250 crore. These projects will generate employment for 37,450 people. 
Moreover, foundation stone for Rs 400 crore mega footwear manufacturing park at Panapakkam, Ranipet, was also laid. 
The policy mission includes creating a conducive eco-system and resilient supply chain for footwear manufacture, by supporting infrastructure through clusters, parks and common facilities, to enhance the non-leather footwear and component ecosystem by supporting ancillary units, and improving ease of doing business for FLP units. 
Considering the labour-intensive nature of FLP manufacturing, the eligibility criteria for comapnies applying for incentives will be relaxed under the Special Package for FLP Manufacturing. 
For leather FLP and standalone non-leather footwear, the eligibility is a minimum investment of Rs 50 crore and minimum employment of 2,000 people; while for component cluster it is Rs 300 crore and 3,000 persons and for allied footwear industries (outside the cluster) it is Rs 150 crore and 100 people. 
Also, investments made from 1 April 2022, will be considered eligible for availing of incentives.
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