While justifying their demands, Industrialists during Interactive session with the Union Minister of State for Industry, Ashwani Kumar, said that as the leather was one of the largest export oriented commodity in India and 70 to 80 per cent of production of leather was meant for direct or indirect exports, and Jalandhar Leather Complex, comprising 100 of leather units, deserve the status of SEZ instead of spending huge allocations of fund for any new SEZ.
Buttering their demand for the status of deemed exporter, industrialists said that as major produce of tanneries was being export either directly or indirectly, it was must to given deemed exporters status to the leather industry.
The minister, who was handed over a memorandum of demand by the leather industry, said that the Union Government has already included the leather sector into the five thrust areas and accordingly efforts were being made to upgrade the skill and provide market support to the industry.
"Leather and Textile are the two sectors, where on every stage of production, some value addition is done to the product and generate employment as well, which needs up-gradation in skill and accordingly the facilities is being provided by the concerned minister", he claimed.
As far as demand of status of SEZ and Deemed Exporter, the minister assured the industrialists that he would take up the issue with the concerned authority and assured a Facilitation Centre for the leather Industry of the city, so that products could be displayed to attract the buyers of both domestic and international market.
Ashwini Kumar revealed that total turnover the leather industry was Rs 33,500 crore, out of which Punjab contributes Rs 1000 crore only in total turnover and Rs 400 core only in Export, which was very low.
"Leather Industry in Punjab is not working up to its potential and it is must for the industry of the state to attain the global recognition to have global acceptability and credibility by improving their technological skills", Kumar suggested, adding that his department has earmarked Rs 10 crore for imparting training for up-gradation of skill and he would ensure diversion of some of the allocated funds to the Sports and Leather industry of the city for Research & Development (R&D) and Facilitation centre.
Earlier the industrialists submitted a memorandum to the minister to demand organized animal farming for ensured supply of raw material to the leather industry, setting up of Common Facility Centre (CFC), Amendment in Labour laws to enable the leather industry to hire contractual labour and waiver of import duty on capital goods.
