Punjab tanneries want sector-specific SEZ

Punjab's Rs 300-crore leather industry, which is plagued with problems like lack of quality manpower, hides, etc has asked the Punjab government for a footwear park or sector-specific special economic zone (SEZ) to attract foreign buyers and promote joint ventures.

They have also asked for an institute on the lines of the Footwear Design & Development Institute (FDDI), Noida.

At present, there are 15-20 medium- and large-scale units and 55-60 small-scale units, apart from tanneries engaged in footwear manufacturing, in the state.

Speaking to Business Standard, Oscar Leathers (P) Ltd Director J P Singh said: "In the footwear sector, a lot of foreign companies are entering into joint ventures with Indian companies and buyback arrangements. But in Punjab, there are only few companies which have entered into joint ventures."

"So in order to compete with other states, the need of the hour is to set up a footwear park to attract the foreign buyers," he said. "Sector-specific SEZs are coming up, and we want the government to set up a footwear-specific SEZ in Punjab in order to boost domestic and overseas sales," he added.

Ajoy Sharma, an industrialist, also advocated the need for a footwear SEZ in the state, to compete in overseas markets, besides reform in labour laws and taxes.

"This will lead to a cut in input costs and we can easily compete in overseas markets on price," said Sharma, adding the leather industry was growing fast in this country because Indian leather-wear enjoyed good demand abroad.

Singh added the industry was facing lack of quality manpower. "We have one such institute in Jalandhar but that is not up to the mark. We need an institute on the pattern of FDDI, Noida," he said.