About UPFC

To support existing tanneries for undertaking modernization programme for positive environmental impact, becoming competitive, effecting better capacity utilization, achieving productivity gains, and reducing wastage etc.

ELIGIBILITY CRITERIA

All existing tannery units undertaking viable modernization programme will be eligible for assistance. “modernization” will include the following:

- measures for technology upradation and productivity improvement.

- Measures for machinery/ facilities upgradation.

- Measures, at individual tannery stage, for adoption of wasta treatment technologies including primary treatment of waste.

Modernisation programmes funded by IDBI/SIDBI/SICs/Banks(eligible for refinance from SIDBI/IDBI) as well as those undertaken by existing tanneries from their own resources will be eligible for assistance.

Financial assistance under the Scheme shall be available only for such prlojects in which the loan by the Bank/Financial Institution has been sanctioned on or after the date of notifying the Scheme. In the case of self-financed modernization undertaken by the units, financial assistance under this Scheme shall be available only for such projects where the order for purchase of machinery has been placed on or after the date of notifying this scheme and subject to necessary documents being field while making the application for assistance under this Scheme.

The project should need to:

· Demonstrable increase in unit value realization and/or

· Increase in production capacities and/or.

· Better compliance of pollution control norms.

PURPOSE

Financial assistance would be available for undertakes following activities:-

· Replacement of pit technology,

· Installation of controls and float recycles,

· Layout and re-organisation of tanneries,

· Installation of instrument process control systems,

· Acquiring in-house chrome recovery and reuse facilities,

· Upgrading of finishing facilities,

· Non-conventional energy applications,

· Creation if in-house R& D and testing facilities,

· Automation of process and Control systems,

· Replacement of obsolete machines,

· Any other activities as decided by the Steering committee

Existing tannery units have option to go for single multiple activities.

QUANTUM OF ASSISTANCE

The assistance will be limited to 30 percent of cost machines in case of Small Scale Units and 20 percent for small scale units.

The cost of machines will include:

· Bill value of machines

· Transportation and transit insurance cost

· Custom duty

Installation cost and expenses for foundation and construction will not be included for the above purposes.

The upper calling or assistance to an industrial unit will be limited to Rs. 28.00 lakhs and Rs. 35.00 lakhs for small scale and non-small scale units respectively.

TERMS OF ASSISTANCE

· An agreement will have to be executed prior to disbursements,

· Assistance will be released after arrival of machines at site and at every stage it will be limited to 20 percent or 30 percent of the cost of machines, as the case may be.

· Industrial unit will be required to submit operational and performance details upto two years from the date fo completion to the designated agency.

· Assistance released would be adjusted towards loan component earmarked for the machines required for the modernization programme.

PROCEDURES FOR SANCTION AND DISBURSEENT

· The implementing agency would be project Management Unit of national Leather Development Programme (PMU-NLDP)

· The nodal agency for release of assistance, monitoring and interface and coordination with FIs, Banks and the Government would be SIDBI.

· In case of loan availed by an industrial unit for modernization programme, in, in industrial unit will apply for the assistance in a prescribed application form to the concerned FI/SFC/Bank. They will be forwarding the application along with recommendation and letter for sanction to programme Management Unit of NLDP for consideration of sanction of assistance by a Steering Committee constituted for the purpose.

· The Steering Committee will comprise of:

Nominee of SIDBI

Nominee of CLRI Representative of DIPP (leather)

Representative of DCSSI

Representative of Finance Wing of DIPP

National Programme Manager of SIDE-NLDP (Convener)

· In case of programme involving no loan component, the industrial unit will be required to apply in prescribed application form to SIDBI directly and they would be forwarding it to PMU sof SIDE-NLDP for sanction by the Steering Committee.

· After sanction of the assistance, FI's/Banks will get an agreement executed by concerned industrial unit on behalf of Govt. of India.

In case of Non-Small Scale Units going to avail assistance from IDBI application fro assistance will be submitted to SIDBI only who will get required formalities completed from IDBI/All Indai Financial Institutions and will be sending the same to PMU-NLDP for consideration of steering Committee.