Government Plans Mega Leather Clusters in Four States

The Centre is establishing mega leather, footwear and accessories clusters in Muzaffarpur in Bihar, Sitapur in Madhya Pradesh, Raigad district in Maharashtra, and Ranipet in Tamil Nadu. The combined investment for these clusters is projected at Rs 898 crore, and the projects fall under industrial development initiatives for the leather and footwear sector.

Mega Leather Cluster Framework

Mega leather clusters are industrial parks for leather products, footwear, accessories and related manufacturing units. Such clusters usually include common infrastructure, industrial plots, logistics facilities and, in some cases, common effluent treatment plants for tannery operations.

Bihar Projects

The Department for Promotion of Industry and Internal Trade granted final approval for a greenfield cluster for the leather products and footwear industry in Muzaffarpur district under the Indian Footwear and Leather Development Programme 2021-26. The Bihar Industrial Area Development Authority is the Special Purpose Vehicle for the Muzaffarpur project, which is being developed on 62.17 acres. Bihar is also developing a separate greenfield cluster for leather processing tanneries in Bhediadangi, Kishanganj district, on 33.77 acres of industrial land. This project includes a dedicated Common Effluent Treatment Plant.

Maharashtra Project at Raigad

The Department for Promotion of Industry and Internal Trade granted in-principle approval for a Mega Leather Footwear and Accessories Cluster Park at Ratwad in Raigad district, Konkan, Maharashtra, on 30 June 2023 and 3 July 2023. The Maharashtra cluster is planned over 151 acres, and the Centre has proposed financial grants of up to Rs 125 crore for the project. The Maharashtra Industrial Development Corporation sought Expressions of Interest from entrepreneurs for manufacturing units at the Mega Leather, Footwear and Accessories Cluster at Dighi Port Industrial Area in Raigad district, with 18 December 2023 as the last date for submission.

Madhya Pradesh Cluster at Sitapur

The Mega Leather Footwear and Accessories Cluster Development project in Industrial Area Sitapur, Morena district, Madhya Pradesh, has a project start date of 16 March 2024 and a project completion date of 16 September 2026. The project status was updated as “Notice to Proceed” on 6 March 2026.

Important Facts for Exams

• The Indian Footwear and Leather Development Programme is a central sector scheme for the leather and footwear industry.
• Common Effluent Treatment Plants are used in industrial clusters to treat wastewater from multiple units.
• Muzaffarpur is in Bihar, Raigad is in Maharashtra, and Morena is in Madhya Pradesh.
• Ranipet in Tamil Nadu is also part of the mega leather cluster plan.

Other Related Fact

A tender for construction of a multistorey building at the Mega Leather Footwear Cluster in Mahbal, Muzaffarpur, was issued on 19 June 2024 by IDABIHAR.