Mfg policy remains on paper 3 months after Cabinet okay

In the absence of notifications by the ministries of labour, environment and finance, the much-publicised national manufacturing policy has not been made operational even three months after its clearance by the Cabinet.

Upset over the delay in operationalisation of the policy, the Department of Industrial Policy and Promotion (DIPP) wants to call a meeting of the concerned departments soon, an official said.

Despite being blamed for "paralysis" in decision-making, the government has recently sought to publicise the policy as a major initiative.

The National Manufacturing Policy (NMP) would be a key enabler for setting of mega zones, including the ambitious Delhi-Mumbai Industrial Corridor (DMIC). It is expected to create 100 million new jobs by 2022.

The policy provides for certain relaxations in regard to environment and labour norms with inbuilt safeguards. Besides, fiscal sops are also proposed. But these have to be notified by the concerned ministries.

While the Cabinet approved the NMP in October, there were differences between the DIPP on the one hand and the ministries of labour and environment, on the other.

The NMP seeks to raise share of the manufacturing sector in the Gross Domestic Product (GDP) to 25% from the present 15-16% in the next decade.

It envisages facilitation by the government in infrastructure development and improvement of the business environment through rationalisation and simplification of the regulatory framework.