9 months on, ministries yet to notify manufacturing policy

Guidelines for setting up units or clusters in this zone delayed without any notifications, says official

The much-talked about National Manufacturing Policy (NMP), aimed at creating world-class infrastructure in India, is yet to be notified by Labour and Environment ministries even as nearly nine months have passed since the Cabinet approved it.

"Both the departments are yet to notify the policy...The main issue is of delegation of power. For single window clearance, delegation of power is important," a senior official in the Department of Industrial Policy and Promotion (DIPP) said.

The NMP would be a key enabler for setting of National Manufacturing and Investment Zones (NMIZs), including the ambitious Delhi-Mumbai Industrial Corridor (DMIC). It is expected to create 10 crore new jobs by 2022.

The official said the guidelines for setting up units or clusters in these zones are getting delayed without notifications from all the departments.

"We are working on the guidelines for NMIZs and clusters, but they will come only after the policy notification by all the concerned departments...We will also put a fast track mechanism for those powers which cannot be delegated...," the official said, adding, "We will have to define the clusters as different definitions are there".

A special purpose vehicle headed by a government official will see the management of the zones.

The policy provides for certain relaxations in regard to environment and labour norms with in-built safeguards. Besides, fiscal sops are also proposed.

While the Cabinet approved the NMP in October 25, 2011, there were differences between the DIPP on 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.

The government has already notified about seven zones in states like Maharashtra, Andhra Pradesh and Rajasthan.

These planned big enclaves could even subsume special economic zones.