The Hindu Business Line : Move to rope in corporates to develop leather industry

THE Andhra Pradesh Government has begun an exercise to tap big corporate houses, including Tatas and Mr Jagmohan Dalmiya of M L Dalmiya & Company Ltd, asking them to invest in the leather industry in the State.

"Talks are on with Tatas and we are hopeful of signing an agreement with the Tatas," Mr Kamal Vardhan Rao, Managing Director of Leather Industries Development Corpo- ration of Andhra Pradesh Ltd (LIDCAP), said.

The Chief Minister, Mr N. Chandrababu Naidu, had already written to Mr Ratan Tata, seeking the latter's investment in the leather projects. "We requested them to utilise the Common Facility Centre set up at the Leather Export Park for taking job work," he said.

The corporation had promised the Tatas to offer all the facilities at the site. "We have also discussed with Mr Jagmohan Dalmiya, the man behind the 1,000-acre CLC (Calcutta Leather Complex) and sought his help in taking up a similar venture in Andhra Pradesh," Mr Rao said. "The CLC has already attracted nearly 500 tanneries," he said.

Besides, the corporation has recently held a meeting with All-India Skins, Hides, Tanners and Merchants Association (AISHMA) to showcase Andhra Pradesh as an ideal destination for their activity. "Many AISHMA members have shown interest in AP," he said.

The corporation has chalked out a two-pronged strategy for development of the sector. "We are very strong in the basics. We supply 10 per cent of India's total rawhide production and we do have good artisans, too. But, 90 per cent of State's footwear intake comes from elsewhere," he said, hinting at the huge potential.

"So, our strategy is to develop the required infrastructure to tap the potential and make the State the manufacturing hub for leather products."

Referring to the roadmap prepared by the corporation in this regard, he said plans were afoot to establish 72 `mini leather industrial parks', 16 medium and six mega parks across the State by 2006-07 in a phased manner.

Apart from these, a 1,000-acre international leather complex will come at Nellore. "The State Government is actively pursuing to get the go-ahead for this Government of India project. The complex is meant for big tanning units," he said.

Another mega park will be set up at GD Nellore in Chittoor district. "Purely meant for export-oriented units, the park is just 150 km away from Chennai, a leading leather products player," Mr Kamal Vardhan Rao said.

On the human resources front, he said as many as 75,000 artisans would be trained this year in various the tannery technologies. "The infrastructure being put in place will provide them good opportunities," he added.

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