During the recent IILF 2006 and in a pre-budget proposal, the Indian Council for Leather Exports (CLE) asked the central government for financial assistance in order to meet the effluent treatment standards set by the Pollution Board of State Government (Tamil Nadu) by 2007. The organisation has requested Rs1,000 million ($23 million) to rationalise the duty structure on the import of tanning and other leather machinery; a status similar to that of the textile industry and permission to release funds from an allocation of Rs2,900 million under the integrated Development of Leather Scheme.

Mr Rafeeque Ahmed, chairman CLE, pointed out that big tanneries in Tamil Nadu have complied with the zero discharge norms, by setting up reverse osmosis systems, but small tanners are facing difficulty in establishing the facilities required in time for the 2007 deadline. He added that if the CLE could offer Rs1,000 million, the industry itself would supply an additional 25% to meet the costs of the new facilities. He also proposed that the 15% central excise duty on the import of machinery be waived in order to assist the industry.