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In a desperate attempt to kick-start the National Manufacturing Policy (NMP), the Department of Industrial Policy and Promotion (DIPP) under the Ministry of Commerce and Industry has asked state governments to provide monthly reports on the status of land for the National Investment and Manufacturing Zones (NIMZ).
The NMP, launched in October 2011 with much fanfare, has failed to garner any investment. Though the government had announced setting up of mega manufacturing zones across the country, designed to attract big-ticket deals, two years on, not a single proposal has been received, primarily due to hurdles concerning land acquisition by companies.
'We have now asked 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.
The matter was discussed with representatives of state governments at the first meeting of the Manufacturing Industry Promotion Board, 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. Initially, seven such zones would be set up. The first three would come up in Maharashtra, Rajasthan and Gujarat.
DIPP has also asked the revenue department to ensure dispensation relating to relief from capital gains tax, as approved in the NMP, be included in the Direct Taxes Code Bill.
The primary objective of the NMP is to raise the share of the manufacturing sector in gross domestic product from the current 15-16 per cent to 25 per cent in the next decade. To woo investors and strengthen the country’s ailing manufacturing sector, the government plans to provide a slew of incentives such as exemption from capital gains tax, liberalised labour and environment norms to promote these zones.
