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Central Government/Public SectorProject Information Development of an integrated export based leather and footwear cluster in Muzaffarpur INR 1800 Cr INR 18 Bn
03-Dec-2016
PID : 265 Bihar-India

Project Category : Sagarmala - Port Led Development

Project Proponent : Sagarmala Development Company(SDC)/ Ministry of Commerce and DIPP

Project Objectives : The project proposes development of a USD 4 billion leather and footwear cluster in Muzaffarpur which can result in addition of 2 lac new jobs and INR 20k Crore earnings of foreign exchange

Project Type : PPP

Tentative Cost Estimates : INR 300 Crore for supporting infrastructure and —INR 1500 Crore for land (USD 46.15 million and USD 230.77 million)

Project Details :

India has 3 key leather clusters with significant export volumes-Tamil Nadu, Uttar Pradesh and West Bengal.
USA—with 13.3 per cent share, Germany (12.8 per cent), UK (12.5 per cent), Italy (8.4 per cent) and Hong Kong (7.4 per cent) were the top five destinations for Indian leather produce.
At 42 per cent, footwear forms the largest share of leather and leather products exports from India. India has grown tremendously from being a raw leather exporter to becoming a supplier of high value added products in the last few decades.
Muzzafarpur is a potential location for development of leather cluster. Availability of raw material, traditional skills, labour and proximity to National Waterways 1 makes it an optimal location. Tanneries and footwear manufacturing units could be revived in Patna and Muzaffarpur. Hence instead of shipping raw leather to Kolkata, Kanpur and Chennai, finished products could be exported from Bihar.

Project Status : Concept/Pre-feasibility prepared

Total Land Requirement : 1800 acres (728.42 Ha)

 

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