Govt set to come up with dedicated policy on footwear industry, says CM

Time of India

5 days ago

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Lucknow: Chief Minister Yogi Adityanath on Friday said the state MSME department would soon come up with a dedicated policy to promote UP's leather and non-leather footwear manufacturing sectors for global competition.
"It is important to identify regions in the state best suited for industry specific development. Integrating production, design, research and training on a single platform could not only attract largescale investments but also generate employment opportunities for lakhs," the CM said while discussing the draft of the said policy.
He added that this integrated approach would help establish a complete and localised 'design-to-delivery' ecosystem within the state.
Stating that there are immense opportunities to give Uttar Pradesh a global identity in this sector, the CM said: "There is a need for a comprehensive, practical and results-oriented policy, considering the state's traditional skills, trained workforce, abundance of raw materials, and the presence of strong industrial centres like Agra, Kanpur, and Unnao."
He also instructed departmental officials to prioritise a cluster-based development model while mentioning that the policy should clearly define which areas of the state are most suitable for this industry.
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"There is a need for infrastructure facilities like flatted factory complexes to offer a better working environment for industrial units," he said. Officials from the MSME department apprised the CM that the proposed policy could generate around 22 lakh jobs in the coming years. India ranks as the second-largest producer and consumer in the world in this sector, with UP playing a significant role. Over 200 operational tanneries are located in Kanpur and Unnao while Agra is recognised as the 'Footwear Capital' of the country.
Yogi emphasised that the policy should also extend special incentives to ancillary units producing components like buckles, zips, soles, insoles, laces, dyes, chemicals, heels, threads, tags, and labels.
"There must be support for units manufacturing specialised machinery for leather stitching, cutting, moulding and production of non-leather safety shoes," he said.
The meeting also included a discussion on the proposed Uttar Pradesh Industrial Asthan Policy.
Officials noted several challenges in the current system, including inefficient land utilisation, lease execution complexities, unauthorised mortgaging and subletting, and idle plots.
The new policy aims to eliminate these hurdles by introducing a transparent, streamlined, and time-bound system. Plot allotment will be conducted via e-auctions or other transparent methods, with land prices determined area-wise.
However, land rates for anchor units will be set by the state govt.
Calling the proposed policy "practical and forward-looking," the CM said: "A clear, simplified and accountable process would provide confidence to investors and catalyse growth."
He also suggested the adoption of a 'lease rent model' to ensure optimal utilisation of limited industrial land, minimise capital expenditure for investors and accelerate development.
To promote private industrial parks, the CM advocated for incentives such as capital subsidies, stamp duty exemptions, and electricity and logistics support, along with a single-window approval system. He directed officials to develop an integrated online portal for applications and disbursement of incentives.