Business Standard

GoM finds 'some solution' on manufacturing policy

Image

Press Trust of India New Delhi

Group of Ministers (GoM) today "succeeded" to find "some solution" on framing manufacturing policy which proposes easing of labour and environment laws, but was stuck due to inter-ministerial differences.

Agriculture Minister Sharad Pawar, who heads the GoM, said after the meeting, "there were certain issues raised by environment,labour and MSME [ministries]. We succeeded, we discussed in depth and found some solution."

Significantly, West Bengal Chief Minister Mamata Banerjee and important ally of the UPA Government, would also be briefed on the new policy, which proposes flexibility in labour laws in the proposed mega industrial enclaves.

"...There was a request that if this proposal is briefed to the West Bengal Chief Minister it will be better. So we will brief. Nothing wrong in that," Pawar said.

 

Senior Trinamool Congress leader and Railway Minister Dinesh Trivedi is also part of an 11-member GoM.

When asked whether all issues have been ironed out, Pawar said "definitely we can say that".

The final draft would be ready tonight and would be sent to the concerned ministries. Improved draft would be placed before the Cabinet, he said.

Earlier last month, the Cabinet could not clear the policy as ministries of environment and labour opposed the proposals brought in by the industry ministry.

Prime Minister Manmohan Singh, then formed the GoM which comprises Environment Minister Jayanthi Natrajan, Labour Minister Mallikarjun Kharge,Commerce and Industry Minister Anand Sharma, Law Minister Salman Khurshid, Micro, Small and Medium Enterprises Minister Virbhadra Singh and Heavy Industries Minister Praful Patel, among others.

According to the draft of the Industry Ministry, a special purpose vehicle, to be headed by a CEO, would oversee the proposed National Manufacturing Investment Zones (NMIZs). However, the proposal ran into problem on concerns that the states may have problem with the arrangement.

It has been agreed now that the SPV would have representatives from the states as well.

The Industry Ministry is pushing for the new policy as it wants that the share of manufacturing in the country's GDP should be stepped up from only 15-16% to at least 25% by 2020.

It has also set a target of creating 220 million jobs in the manufacturing sector by 2025.

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Oct 14 2011 | 8:01 PM IST

Explore News