The government is likely to extend an incentive scheme for leather and footwear industries, IFLADP, till 2025-26 with an outlay of Rs 1,700 crore, to boost manufacturing, exports and job creation, an official said.

The commerce and industry ministry has submitted a proposal for the implementation of the Indian Footwear Leather and Accessories Development Programme (IFLADP) with an outlay of Rs 1,700 crore, to be incurred during 2021-22 to 2025-26, the official said.

The Union cabinet might approve it soon, the official added.

The programme has six components — Sustainable Technology and Environmental Promotion (proposed outlay Rs 500 crore); Integrated Development of Leather Sector (proposed outlay Rs 500 crore); Establishment of Institutional Facilities (Rs 200 crore); Mega Leather Footwear and Accessories Cluster Development (Rs 300 crore); Brand Promotion of Indian Brands in Leather and Footwear Sector (Rs 100 crore); and Development of Design Studios (Rs 100 crore).

The expenditure finance committee, under the finance ministry, has already approved the commerce ministry’s proposal, the official added.

Earlier, the IFLADP was announced with an expenditure of Rs 2,600 crore for three financial years — 2017-18 to 2019-20. It was also aimed at the development of infrastructure and facilitate additional investments, increasing production and employment generation.

Sanjay Leekha, chairman of the Council for Leather Exports, said the scheme was “extremely” beneficial for the sector.

“It helped the sector in registering healthy growth rates. If the government extends it, the leather industry would get a significant fillip,” he said.