Com Min to meet Environ Min on manufacturing policy tomorrow

Commerce and Industry Minister Anand Sharma will tomorrow discuss the proposed manufacturing policy and industry concerns on green clearances for projects with the new Environment Minister Jayanthi Natarajan.

"Both the ministers will meet tomorrow to discuss issues like the proposed policy and environmental clearances for various projects," an official said.

Several large projects like Posco in Orissa and Lavasa in Pune, have been delayed due to controversies over alleged flouting of green norms.

The draft manufacturing policy, which aims to attract overseas investments besides increasing the share of manufacturing in the GDP, has been stuck due to inter- ministerial differences, with the opposition coming mainly from the labour and environment ministries.

It suggests that industries in National Manufacturing Investment Zones (NMIZs) - big enclaves which could even subsume special economic zones - should be given flexibilities to downsize labour. Likewise, it recommends changes in the environment norms which come in the way of investment.

The Department of Industrial Policy and Promotion (DIPP) had floated a concept paper for setting up National Manufacturing and Investment Zones (NMIZs), which are being planned as mega industrial zones, industrial parks and warehousing units.

India aims to increase the share of manufacturing sector, which contributes over 80% to the country's overall industrial production, from 16-17% to 25-26% of the gross domestic product by 2020.

DIPP Secretary RP Singh had also expressed disappointment over the opposition to the draft policy from environment and labour ministries.

The draft policy aims to create 100 million new jobs and taking the share of manufacturing to 25% in the country's GDP by 2025. At present, manufacturing contributes 15-16% to the economy.