The Tata group have expressed an interest in developing the proposed Rs200-crore international leather complex, in Krishnapatnam, about 150km from Chennai. The Tata group already have a major tannery at Dewas in Madhya Pradesh. The union government will invest Rs30 crore in the project and the state government will provide land.
The developer will be required to invest the remaining money in the project on a BOT basis. The Andhra Pradesh government is setting up the leather complex on a sprawling 350 acres of land on the coast. The union government is setting up the proposed project in collaboration with the AP government and private partners.
According to officials, no decision has yet been made over the choice of developer for the project. The complex would generate about 5,000 direct jobs and about 10,000 indirect jobs in the state. ‘We are expecting about ten major tanneries would be set up in the complex’, officials said.
The state government has recently entered into an agreement with Central Leather Research Institute (CLRI) for development of a ‘Draft Project Report’ (DPR), which is expected to be ready in the next two months.
The complex will have a common effluent treatment plant, export processing zone, research centre, bonded warehouse and marketing facilities. The expected combined capacity of the tanneries in the complex would be between 200-300 tonnes of hides/skins per day.
