The proposed National Manufacturing Policy that aims at developing mega industrial zones with the world-class infrastructure and flexibility in labour and environment laws is likely to come up before the Union Cabinet tomorrow.
Earlier last month, the ministries of environment and labour were opposed to the proposals brought in by the Industry Ministry.
The Prime Minister, Dr Manmohan Singh, had formed a Group of Ministers (GoM) headed by Agriculture Minister Mr Sharad Pawar to resolve the contentious issues.
“All the issues pertaining to environment and labour are resolved. Most likely the Cabinet will take up the policy tomorrow,” a senior official in the Department of Industrial Policy and Promotion (DIPP) said.
Mr Pawar had said that the Group of Ministers (GoM) was successful in framing the manufacturing policy which proposes easing of labour and environment laws.
According to the draft policy of the Industry Ministry, a special purpose vehicle, to be headed by a CEO, will oversee the proposed National Manufacturing Investment Zones (NMIZs).
However, the proposal ran into hurdles——there were concerns that states may have problem with this arrangement.
The NMIZs, to come up in the private sector, would have facilities such as industrial towns and other infrastructure, like the ones set up in China, a global manufacturing hub. It has now been agreed now the SPV would have representatives from states as well.
The Industry Ministry is pushing for the new policy. It wants the share of manufacturing in the GDP to go up from 15—16 per cent now to at least 25 per cent by 2020.