Rs 2,000 crore likely to be invested in mega leather cluster in UP

Rs 400-crore will be spent on infrastructure; facility to be ready by mid-2015

The proposed Mega Leather Cluster (MLC) at Sandila in central Uttar Pradesh is projected to fructify by mid-2015 and is likely to attract investment of almost Rs 2,000 crore.

The cluster would be a major boost to the Micro, Small and Medium Enterprises (MSME) as 50 per cent of land would be given to such units.

The proposed facility, will be set up at an investment of Rs 400 crore, would have the added advantage of backward and forward linkages with the major leather industries hub of Kanpur in vicinity.

The Centre would contribute its share of Rs 125 crore towards project development.

Meanwhile, 162 acres of land had been allotted to the special purpose vehicle (SPV) Leather Cluster Development Private Limited, which has the in-principle approval of the central department of industrial policy and  promotion (DIPP).

Now, the mandatory central environmental clearance is awaited, so that infrastructure development gets going viz. facilities for treating effluents, rain water harvesting, warehousing, raw material banks, exhibition centre, design centre and human resource development.

On Tuesday, UP infrastructure & industrial development principal secretary Surya Pratap Singh had visited the project site.

“UP has an advantage in leather processing as the state already has traditionally strong pockets of leather industry. The MLC at Sandila will go a long way in leveraging this inherent lead by providing world-class facilities and advance technology to leather industrialists,” he said.

UP State Industrial Development Corporation (UPSIDC) managing director Manoj Singh said the central environment ministry had suggested setting up of a central effluent treatment plant on 80 acres of land.

UPSIDC is the nodal agency for the green field project, which is expected to create 10,000 fresh jobs.

Sandila industrial area spans over 1,820 acres.

UP has planned two green field MLCs in Hardoi and Kanpur under a central scheme.