The Hindu Business Line : `Leather industry's plea for treatment facilities will be addressed'

THE Union Government will consider the leather industry's request for a Rs 100-crore assistance to set up water treatment facilities at the effluent treatment plants for small tanners.

This was stated by the Communications and IT Minister, Mr Dayanidhi Maran, at the inauguration of the annual India International Leather Fair (IILF), here on Tuesday, in response to the industry's request to meet the effluent treatment standards set by the State Government. Mr Maran said he would also take up with the Centre the industry's request for concessions in excise on leather and leather products and the countervailing duty on leather machinery.

The Indian Trade Promotion Organisation, which organises the leather fair, would add an additional 6,000 sq. m. of covered exhibition space at the Chennai Trade Centre at a cost of Rs 12 crore.

The Government would spare no efforts to support the industry, but it was up to the industries to fully exploit the potential and meet international competition. South-East Asia was emerging a major competitor and the leather industry here needs to meet the quality and technological standards expand its market, he said.

Mr Rafeeque Ahmed, Chairman, Council for Leather Exports, said the major issue facing the industry was the need to meet zero discharge requirement laid down by the State Government. Small units would find it tough to set up reverse osmosis facilities needed by 2007 to meet the deadline. If the Centre granted Rs 100 crore, the industry would put together an additional 25 per cent to meet the cost of the new facilities. Also, concessions were needed on excise on leather and leather products, countervailing duty on leather equipment needs to be abolished to support small players, he said.

The industry hoped to end this year with exports of $2.38 billion with footwear contributing about 36 per cent. With the Government's support it would easily meet the target of doubling exports by 2010.

The four-day exhibition has over 315 exhibitors, including 103 companies from 21 countries. Brazil and Italy have major contingents and Pakistan and Bangladesh, which are looking for business opportunities here, have a significant presence.