Italian, Chinese firms eye place in leather complex

Few Italian and Chinese companies have shown keen interest in setting up units in the much talked about Calcutta Leather Complex (CLC) that is set to start operation from third week of June.

The state commerce and industries minister Nirupam Sen disclosed this to the reporters here during the signing of MOU between ML Dalmiya & Company, state government and CLCTA, the company formed by the tanners to take over the operation of CLC.

Sen said that small and medium size leather outfits from Italy and China have already contacted the state government for setting up units in CLC.

"We are now talking to them. But nothing has yet to be materialised," he said. The president of CLCTA and one of the promoters of Toptans, one of the leading tanneries of the city, Jamil Ahmed supplemented the industry minister by saying that the Italian and Chinese companies are even looking for joint ventures with the Indian companies for starting operations in CLC.

"They are probably waiting for the commercial production. Once it starts and CLC runs successfully, few units foreign units will definitely come. An Italian delegation has already visited the leather complex and few members have approached us for JV," he said.

Earlier, the state industry minister claimed that CLC could well become one of the largest source of foreign direct investment in the state.

Terming the leather complex as the biggest of its kind in Asia, he said that 60 tanneries have signed MOU for starting commercial production from the end of June.

According to him, the total project cost for CLC is around Rs 300 crore. The complex is spreading over 1100 acres or four square kilometres.

"It will consume more than 80 MW per day when it will run in full capacity," he added. Ahmed informed that the combined investment of 60 tanneries, which are likely to start commercial production from June, will be around Rs 150 crore.

"By the end of this year 60 more tanneries will join. We hope that in next one year almost 90 per cent of the 419 tanneries of the city will be relocated," he added.