DPIIT Revises Fund Release Mechanism Under IFLDP Schemes

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Dated: 07.07.2025

DPIIT Revises Fund Release Mechanism Under IFLDP Schemes

The Government of India had launched the Indian Footwear and Leather Development Programme (IFLDP) to promote brand building, innovation, design, and cluster-based development of the leather and footwear industry. It includes sub-schemes such as:

Brand Promotion
Design Studio
Sustainable Technology and Environmental Promotion (STEP)
Mega Leather Footwear and Accessories Cluster Development (MLFACD)

A corrigendum dated 4th July 2025 has been issued to revise certain provisions related to Trust and Retention Account (TRA) handling and fund release mechanisms.

What’s Changed?

The revised guidelines now mandate a project-specific TRA in a nationalized bank for each sub-scheme beneficiary. Key changes include:

Uniform TRA Compliance

All beneficiaries (industry, SPVs, etc.) must:

Open a dedicated Trust and Retention Account (TRA)
Deposit their respective share of the project cost into this TRA
Comply with the revised method for receiving Government of India’s share

Centralized Fund Release via TSA-1A

Instead of direct transfer to TRA via ECS, the Central Nodal Agency (CNA) will now:

Release funds under the TSA-1A module
Follow the protocol outlined in the Master Circular (OM No. 3(06)/PFMS/2023) dated 01.05.2024, issued by the Department of Expenditure

Scheme-Wise Summary of Corrigendum

Sub-Scheme	Original Provision (Brief)	Revised Provision (Key Update)
Brand Promotion	Funds released to TRA directly	Govt. share released via CNA through TSA-1A
Design Studio (STEP)	Beneficiary to open TRA; funds directly transferred	Same TRA rule + Govt. share routed via CNA under TSA-1A
Sustainable Tech. & Env. Promotion	Same as above	Same update as Design Studio
MLFACD	ECS-based fund release	Now routed through CNA via TSA-1A; ECS no longer applicable

Purpose of the Corrigendum

Ensure transparency and standardization in fund flow
Align IFLDP with latest PFMS protocols and expenditure rules
Streamline implementation via Central Nodal Agencies

Implementation & Compliance

This corrigendum is effective immediately and all other terms and conditions of the scheme guidelines remain unchanged. All concerned beneficiaries are required to revise their project financial planning and reporting in line with the amended procedure.

Conclusion

This amendment ensures smoother implementation of financial disbursement under IFLDP. Beneficiaries must take note of the revised fund routing mechanism through TSA-1A and update their internal compliance processes accordingly.

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Source: DPIIT

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