Stating that the rationale being that country’s manufacturing sector, contributing only 15 per cent of GDP, did not match upto its Asian countries and that India has not been able to fully leverage opportunities provided by the world economy, the Centre says the policy will help the sector to be the bulwark of employment generation over the next decade.
The Department of Industrial Policy & Promotion (DIPP), under the Ministry of Commerce & Industry, while pointing out the policy was also critical in ensuring that India growth model was sustainable, said among proposals contemplated includes of National Manufacturing & Investment Zone/s which would act as key enabler in driving the sector’s growth.
Investment incentives
Besides envisaging good physical infrastructure, progressive exit laws, the policy proposed investment incentives and business friendly approval mechanisms, which will make India hub for both domestic and international markets, increasing the sector’s share in GDP to 25 per cent by 2022.
Apart from common infrastructure and support services, National Manufacturing & Investment Zones (NMIZs) would boast of high-class infrastructure, competitive environment, and would be a combination of production units, public utilities, logistics, environmental protection mechanisms, residential areas and administrative services. A high powered committee will scrutinise applications for setting up NMIZs, monitor and expedite their progress.
Special purpose vehicle
The processing area, where manufacturing facilities, along with logistics and other services and required infrastructure will be located, would also include special economic zones, industrial parks & warehousing zones, EOUs, all enjoying benefits available under the Centre and state industrial policies. A Special Purpose Vehicle (SPV) will be formed which will be eligible for capital gain benefits.
The SPV would be will be responsible for NIMZs development and management issuing/expediting approvals and pre-approvals. It would be headed by a CEO enjoying appropriate autonomy, and see participation of developer or co-developers, industry associations and few major manufacturers.
The NMIZs, besides putting in place social security schemes for workforce through the SPV, will enjoy easy exit and job loss policies, among others.
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