Sustainable Technology and Environmental Promotion (STEP) Sub-Scheme: A Guide

The Sustainable Technology and Environmental Promotion (STEP) sub-scheme is a vital component of the Indian Footwear and Leather Development Programme. This initiative focuses on promoting environmentally sustainable practices within the leather and footwear industry. This piece explores the guidelines of the STEP sub-scheme, highlighting its objectives, implementation, and support mechanisms.

Background and Need for STEP

The leather industry, particularly tanning activities, is known for its environmental impact. To address these concerns, stringent measures are needed to cope with wastewater treatment and other environmental issues. The STEP sub-scheme seeks to provide financial support for the establishment and upgrade of common effluent treatment plants (CETPs) and promote sustainable practices within the industry.

Objectives of the STEP Sub-Scheme

The STEP sub-scheme has the following primary objectives:

• To provide financial support to Leather Clusters for establishing or upgrading Common Effluent Treatment Plants (CETPs).

• To promote the adoption of techniques for hazardous waste management.

• To support the preparation of a vision document for the Footwear and Leather Sector.

Components of the STEP Sub-Scheme

The scheme provides assistance under two main components:

1. Establishment or Upgradation of Common Effluent Treatment Plants (CETPs): This component provides financial support for:

   • Establishment/upgradation of CETPs.

   • Upgradation of constituent Primary Effluent Treatment Plants (PETPs).

   • Developing secure landfills.

   • Conversion of waste into by-products.

   • Adopting other techniques for hazardous waste management.

   • No provision is made for upgrading individual tanneries, only for common infrastructure.

2. Preparation of Vision Document for Footwear and Leather Industry: This component aims to prepare a vision document that will guide the technological developments and policy directives in the sector.

Implementation Methodology

• Special Purpose Vehicle (SPV): The benefits under the scheme are provided to groups of entrepreneurs through a Special Purpose Vehicle (SPV), promoted by such entrepreneurs.

• Appraising Agency: The Central Leather Research Institute (CLRI) acts as the appraising agency.

• Project Monitoring Committee (PMC): CLRI also serves as the Project Monitoring Committee for concurrent evaluation.

• Tripartite Agreement: A tripartite agreement is signed between CLRI, SPV, DPIIT, and the State Government, outlining responsibilities and timelines.

• Compliance: CLRI ensures that individual tanneries comply with environmental norms.

• Salt Management: CLRI ensures appropriate arrangements for salt management.

• Environmental Standards: CETPs must comply with standards for emissions and discharge under the Environment (Protection) Rules, 1986.

Pattern of Assistance

The Central Government provides assistance under the scheme, with the following pattern:

• North Eastern Areas: 80% of the total project cost.

• Other Areas: 70% of the total project cost, subject to a maximum of ₹200 crore.

• The share of the industry/beneficiary is 20% for North Eastern Areas and 30% for other areas.

• SPVs may receive contributions from State Governments.

• Government of India assistance is provided as a one-time grant for infrastructure.

• Operation and maintenance costs are borne by the industry.

Release of Funds

Funds are released to the SPV in four installments:

1. First Installment: 25% of the assistance on approval of the project and production of a statement of project-specific Trust and Retention Account (TRA).

2. Second Installment: 25% of the assistance upon utilization of the first installment and production of a statement of project-specific TRA.

3. Third Installment: 25% of the assistance upon utilization of the previous installment and production of a statement of project-specific TRA.

4. Fourth Installment: 25% of the assistance upon utilization of the previous installment and production of a statement of project-specific TRA.

Other Conditions

• Appropriate performance guarantees are required.

• Procurement policy must be as per Government’s General Financial Rules (GFR).

• Assets created must not be disposed of or used for other purposes.

• A monitoring system is established for progress and proper utilization of benefits.

• A digital portal will be established for proper identification and monitoring.

Preparation of Vision Document

• The Development Council for Footwear and Leather Industry is responsible for preparing the vision document.

• The document will be prepared through stakeholder consultations.

• The Government of India will provide 100% assistance for this component, up to a maximum of ₹5 crore.

• Funds will be released in two installments.

Conclusion

The Sustainable Technology and Environmental Promotion (STEP) sub-scheme is a crucial initiative to promote eco-friendly practices in the Indian footwear and leather industry. By providing financial support for CETPs and encouraging sustainable practices, the scheme aims to protect the environment while supporting the growth of this important sector. The emphasis on shared responsibility and collaboration among various stakeholders ensures the long-term success of the scheme.