The proposed National Manufacturing Policy which aims at creating mega industrial zones with world-class infrastructure without the rigid labour and environment laws, is likely to come up before the Union Cabinet tomorrow.
The equity restructuring plan of the DMIC Development Corporation (DMICDC), a special purpose vehicle for industrial development along the Delhi-Mumbai rail corridor, is also expected to be placed before the Cabinet, sources said.
The manufacturing policy aims at creating 100 million jobs and taking the share of manufacturing to 25 per cent of the country’s GDP by 2020 from the current 15-16 per cent. The sector contributes over 80 per cent to the country’s overall industrial production.
The draft policy which was given an in-principle clearance by a high-level committee chaired by the Prime Minister, Dr Manmohan Singh, in June had faced some opposition from the ministries of labour and environment.
The draft document had suggested that besides fiscal sops, the units in the proposed National Manufacturing Investment Zones (NMIZs) should be exempted from the labour and environment laws.
These zones, which may come up in the private sector, would have facilities like industrial towns and other infrastructure like the ones set up in China, a global manufacturing hub.
The DMICDC proposal relates to fund infusion of Rs 18,500 crore as also change in the equity structure of the company.
The money infusion is for creating seven new cities in six States including Gujarat, Haryana, Uttar Pradesh and Madhya Pradesh.
At present, the Government has a 49 per cent stake in the DMIC project, while 51 per cent is jointly held by Infrastructure Leasing and Financial Services (IL&FS) and Infrastructure Development Finance Company.