Centre wants faser clearances in proposed mfg zones

A manufacturer who needs to comply with as many as 70-odd legislations today can now hope for easier life if he makes investment in the specific zones being proposed by the government.

In the proposed National Manufacturing and Investment Zones (NMIZs), the states are expected to come out with specific legislation to ensure faster clearances of projects.

"The states should bring out 'manufacturing zone act and rules' to make it mandatory on the part of various departments and authorities to provide clearances to units based in these zones," says the concept paper prepared by the Department of Industrial Policy and Promotion, on NMIZs.

In a move to boost manufacturing and increase its share in GDP from the current 15 to 25 per cent by 2022, the Centre has proposed NMIZs, which could almost be industrial towns subsuming special economic zones, export-oriented units, and domestic tariff areas.

According to the DIPP concept paper, on an average, a manufacturing unit has to comply with as many as 70-odd legislation with each clearance requiring at least one licence or registration certificate. These compliances involve multiple inspections, in some cases monthly and in some others yearly. Also, returns to be filed are on monthly, quarterly or yearly basis, totalling up to over 100 returns in a year.

"Naturally, this involves a lot of paper work, time and effort of the manufacturers which in case of SME has to be done by the proprietor himself most of the time," it says.

Since majority of these compliances are required at the local government levels, the Centre has suggested to the states to enact laws that could offer early clearances and approvals to investors.

The Centre has also proposed dedicated a 'single window clearance authority' both at Central and state levels.

"The manufacturing unit should be required to deal with only these two agencies and requisite powers should be vested with these authorities," says the paper that has been floated for public comments.

Meanwhile, industry body Ficci has welcomed the discussion paper on the National Manufacturing Policy. "The zones as proposed would minimise the burden of regulatory compliances and inspection on the manufacturing sector," Ficci secretary general Amit Mitra said.