 "DIPP asks states to report back on land for manufacturing zones")
The NMP, which was launched in October 2011 with much fanfare, has failed to garner any investment contrary what was initially expected. The government had announced setting up of such manufacturing zones across the country which were designed to attract some big-ticket deals. But two years down the line, not one proposal have come in, primarily due to problems concerning acquisition of land by companies.
“We have now asked the state governments to provide a report on the 15th of every month on the status of land for the NIMZ in their respective states,” a senior DIPP official told Business Standard on condition of anonymity.
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The matter was strictly discussed with the state governments’ representatives during the first meeting of the Manufacturing Industry Promotion Board (MIPB), which was chaired by commerce and industry minister Anand Sharma, on July 23.
The first phase of the NIMZ is expected to come up along the Delhi-Mumbai Industrial Corridor (DMIC). Initially, seven such zones will be created, out of which first three zones will come up in Maharashtra, Rajasthan and Gujarat.
DIPP has also nudged the revenue department to ensure that the dispensation pertaining to relief from capital gains tax as was approved in the NMP is included in the Direct Tax Code (DTC) Bill.
The main objective of the NMP is to raise share of the manufacturing sector in the GDP to 25% from the present 15-16% in the next decade.
In order to woo investors and strengthen the country’s ailing manufacturing sector, the government plans to provide a plethora of incentives like exemption from capital gains tax and a liberalised labour and environment norms to promote these zones.