Govt clears watered down manufacturing policy

The government today approved a watered down version of the long-awaited National Manufacturing Policy (NMP) which seeks to set up mega industrial zones and create 100 million jobs by 2022.

The policy that was approved by the Union Cabinet has diluted the proposals relating to labour and environmental laws, following consultations on the original draft by a Group of Ministers headed by Agriculture Minister Sharad Pawar.

While the original proposal, enumerated in 2009 draft, advocated a flexible labour and environmental laws for the mega industrial zones, the policy cleared today rule out any such flexibility.

It said the "exit policy [for workers] will be prepared keeping in view the provisions for protection of workers' rights within the statutory framework".

On management of National Investment and Manufacturing Zones (NIMZs), the policy says the governing body in the form of special purpose vehicle (SPV) would be headed by a government official.

Under the earlier proposal, the SPV was to be headed by a Chief Executive Officer.

Evading a direct reply to a question on dilution of the original proposal, Commerce and Industry Minister Anand Sharma said "there were concerns" that was why a GoM was set up.

"It [concerns] was addressed in participatory and consultative manner. We came out with a robust policy, which is one of the major policy rollouts in recent times," he said.

"The NMP seeks to enhance the share of manufacturing in the GDP to 25% within a decade and create 100 million jobs in manufacturing as part of the inclusive growth agenda of the UPA," Sharma said after Cabinet cleared the policy.