NMP: Centre asks states to set up mega manufacturing zones

New Delhi: Centre has asked states with surplus land to consider setting up mega industrial zones in sync with the national manufacturing policy (NMP) unveiled recently. In a letter to state chief secretaries, secretary in the department of industrial policy and promotion (DIPP) PK Chaudhary has said, “states which have sizeable land banks, consisting of government-owned land, existing defunct industrial areas/sick units, including PSUs could opt for National Industrial and Manufacturing Zones (NIMZs).” [caption id=“attachment_128181” align=“alignleft” width=“380” caption=“NIMZs have been conceived as townships with state-of-the-art infrastructure and self-regulation through a special purpose vehicle. Reuters”]  [/caption] It said that the NIMZs have been conceived as townships with state-of-the-art infrastructure and self-regulation through a special purpose vehicle (SPV). These would be different from special economic zones in terms of size, level of infrastructure, planning and governance structures related to regulatory procedures, and exit policies. The NMP, which was cleared by the Union Cabinet on 25 October, places emphasis on rationalisation and simplification of business regulations without requiring legislative amendments. However, a number of these regulations are in the domain of the states. “As such, states would need to put in place a necessary mechanism for rationalising the regulations that impact manufacturing industry, while at the same time ensuring that the purpose of these regulations is well-served through alternative mechanism,” Chaudhary said in his letter. The Centre, he said, considers the role of state governments critical to implementation of the policy, which is aimed at taking share of manufacturing in India’s GDP to 25 percent by 2022 from 15-16 percent at present. “The actualisation of this policy will depend on the manner in which states undertake to implement it,” Chaudhary said. The NMP is also critical for implementation of the $90 billion Delhi-Mumbai Industrial Corridor (DMIC), a SPV which will build industrial infrastructure and towns in seven states such as Gujarat, Rajasthan, Madhya Pradesh, Haryana and Uttar Pradesh. PTI