Indian Minister of State for Commerce Jairam Ramesh, has announced that the Indian government plans to set up an exclusive leather ‘SEZ’ (Special Economic Zone) in Andhra Pradesh at Tada, Nellore district, to produce footwear and leather goods. However, he added that no tanneries are planned for the proposed SEZ, in view of the environmental factors involved.

The zone will require an initial investment of Rs1000 million ($22 million) and is set to be established as a joint venture between a consortium of shoe manufacturers, the Tata group of companies and the AP Government.

The new zone is expected to be built adjacent to the Apache SEZ, and if completed it will be the largest footwear manufacturing facility in the country. It is hoped that it will be ready within three years, with the capacity to produce leather goods worth Rs22 billion.

Several companies, including Tata International, have already indicated their willingness to set up units in the SEZ.