IFLDP revised guidelines released by DPIIT

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Dated: 18.08.2025

IFLDP revised guidelines released by DPIIT

The Indian Footwear and Leather Development Programme (IFLDP) has been a cornerstone initiative by the Government of India to promote sustainable growth in the leather and footwear industry. Recently, significant updates and changes have been announced regarding the guidelines for its sub-schemes, including Brand Promotion, Design Studio, Sustainable Technology and Environmental Promotion (STEP), and Mega Leather Footwear and Accessories Cluster Development (MLFACD). Here’s a detailed overview of the latest developments.

Key Updates in IFLDP Guidelines

Withdrawal of Corrigendum 

A notice dated 12 August 2025 announced the withdrawal of previous corrigendum issued on 4 July 2025 and 7 July 2025. The exemption of IFLDP funds from the Treasury Single Account (TSA) module until 31 March 2026 has been confirmed. This decision aims to streamline fund flow and implementation processes for the programme.

Revised Guidelines

The corrigenda issued earlier had introduced changes to the fund release mechanism under the TSA-1A module. These changes were aligned with the Master Circular issued by the Department of Expenditure on 21 May 2024. However, with the withdrawal of these corrigenda, the implementation process will revert to the original guidelines until further notice.

Master Circular on CNA Model 

The Master Circular issued by the Ministry of Finance on 21 May 2024 provides comprehensive guidelines for fund release under Central Sector Schemes. It outlines three models for fund flow:

Model-1: Treasury Single Account (TSA)
- Applicable for schemes with an annual budget of ₹100 crore or more.
- Funds are managed through accounts opened in RBI’s e-Kuber system.
Model-1A: Hybrid TSA
- Designed for schemes involving private sub-agencies or multiple levels of implementing agencies.
- Combines RBI accounts for government agencies and commercial bank accounts for private agencies.
Model-2: Scheduled Commercial Banks
- Suitable for schemes with a budget of less than ₹100 crore.
- Funds are managed through savings accounts in scheduled commercial banks.

The circular also highlights exemptions for certain fund releases, such as Direct Benefit Transfer (DBT) and payments to Indian Missions abroad.

Impact on IFLDP Sub-Schemes 

The IFLDP sub-schemes aim to enhance the competitiveness of the leather and footwear industry through targeted interventions. The recent updates ensure:

Flexibility in Fund Management: Exemption from TSA module allows smoother fund flow for projects under IFLDP.
Clarity in Implementation: Withdrawal of corrigenda eliminates ambiguity, ensuring stakeholders can follow the original guidelines.
Alignment with Financial Rules: The programme continues to adhere to the General Financial Rules (GFR) and the Master Circular’s provisions.

Looking Ahead

The IFLDP remains a vital initiative for fostering innovation, sustainability, and growth in the leather and footwear sector. With these updates, the government aims to simplify processes and enhance the efficiency of fund utilization. Stakeholders are encouraged to stay informed about further announcements and adapt their strategies accordingly.

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Source: DPIIT

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