From Our Special Correspondent
Daijiworld Media Network

Bangalore, May 14: State-owned Karnataka Leather Industries Development Corporation (LIDKAR), which is heavily in the red, is proposed to be revived for promoting leather industry and helping leather artisans, by investing development expenditure of Rs. 9.15 crore in 2010-11.

Out of the Rs 9.15 crore to be pumped in by the state government during the current year, bulk of the amount would be  utilized for upgradation of technology for designing better quality products such as leather bags, purses, belts, shoes, gloves, marketing and creating assets them across the state.

Addressing a news conference, Karnataka’s small scale industries and sericulture minister Venkataramanappa, said the government had  spent Rs. 3.50 crore for various developmental activities in 2009-10.

The corporation, established in 1976, has been incurring losses since 2000-01, in account various reasons, including poor quality of products, lack of publicity for products and marketing.

LIDKAR incurred loss of Rs. 2.12 crore in 2000-01, Rs. 1.93 crore in 2001-02, Rs. 2.26 crore 2002-03 and Rs. 1.96 crore in 2003-04.

However, the loss started coming down in subsequent years. It was Rs. 99.68 lakh in 2004-05, Rs. 2.23 crore in 2005-06, Rs. 43 lakh in 2006-07, Rs. 2.11 crore in 2007-08 and Rs. 22 lakh in 2008-09.

 ``We have now managed to reach the break-even level in the turnover in 2009-10,” the Minister said.

Venkataramanappa said the government has directed the department officials have been instructed to prepare a detailed project report for revival of the corporation. 

As nearly 40,000 poor artisans depend on the corporation for their source of livelihood, the Social Welfare Department has agreed to release Rs  2 crore for revival of the LIDKAR, he disclosed.

 The Minister, who reviewed the progress of the corporation, said new marketing outlets would be opened in Mysore, Dharwad, Bangalore and Bagalkote to increase the sales. Rs 25 lakh would be released for renovation of outlets.

There were 24 outlets in the State and only four outlets located in Bangalore, Mysore, Hubli and Hospet have been making profits for the past few years, he said.

 As part of the strategy to  boost sales by reducing the prices of products, the Finance Department has been urged to exempt VAT for leather goods, he said.

``We will make an all out effort to earn profit at least Rs. 10 crore a year,” he promised adding that a sum of Rs. 25 lakh would be spent on giving publicity to LIDKAR products.