Lucknow: The Uttar Pradesh (UP) government has decided to speed up the Sandila Mega Leather Cluster project, an official said on Wednesday.
The cluster, to be completed in two years, is likely to attract investment of over Rs 2,000 crores and create employment for over 10,000 people.
Surya Pratap Singh, principal secretary, industrial and infrastructure development department, said that UP has an added advantage in leather processing sector as the state already has traditionally strong pockets of leather industry.
"Establishment of the mega leather cluster at Sandila will go a long way in leveraging this inherent lead by world-class facilities and advance technology to leather industrialists," Singh said.
"If everything goes as per plan, the project should be ready by mid of 2015," he added.
The land for the project has been already allotted to the special purpose vehicle (SPV), and all environmental clearances have been sought from the union government, the official said.
Managing director of the Uttar Pradesh State Industrial Development Corporation (UPSIDC) Manoj Singh said the environment ministry had asked for setting up of a "central effluent treatment plant" on 80 acres of land.
"UPSIDC is ready to allot additional 20 acres of land for this purpose in first phase," he added.
The leather cluster will be developed by SPV at an estimated cost of Rs 400 crores on 162 acres of land. The union government will make a contribution of Rs 125 crores towards project development.
It is proposed that 50 per cent of the cluster`s land would be given to small and medium sector units.
Infrastructure will include facilities for treating the effluents generated in parks, rain water harvesting, warehousing, raw material banks, exhibition centre, design centre and human resource development.
The UP government has planned two green field mega leather cluster projects in Hardoi and Kanpur districts under a Government of India scheme.
Sandila industrial area is spread over 1820 acres. UPSIDC has developed the basic infrastructure including roads, power network, water supply and sewage.