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The Labour Ministry has refused to compromise on the issue of site inspections in the proposed National Manufacturing and Investment Zones (NMIZs).
This is just one issue on which the Ministries of Labour and Commerce do not see eye-to-eye in the proposed NMIZ policy.
“Inspections have to be done by the Government, with which sovereign power rests. There is no question of self-certification. Joint and third party inspections, too, will have to involve the Government,” a Labour Ministry official told Business Line .
The NMIZ policy aims to boost the flagging manufacturing sector share in GDP to 25 per cent by 2022 from the current 16-17 per cent. This is to be achieved by addressing issues relating to unemployment, growth and exports.
The policy proposes the setting up of industrial townships, which will be bigger than the existing Special Economic Zones. The Commerce Ministry proposes to seek exemption from certain labour laws, including a hire and fire policy for industries coming up in the industrial townships.
The Labour Ministry, which has submitted a note to the Commerce Ministry, is opposed to a blanket hire and fire policy.
“We may allow certain leverages in some cases and are ready to consider good exit packages. Such cases can be referred to a constitutional mechanism such as a Special Purpose Vehicle (SPV) with a senior government official as its head”, the Labour Ministry official said.
Trade unions, such as the Bharatiya Mazdoor Sangh (BMS), have also opposed exemption of labour laws in these zones. Seeking immediate withdrawal of the policy, the BMS said prohibiting workers from forming trade unions was a violation of the fundamental rights enshrined in the Constitution.
According to reports, the first such township will be coming up in Rajasthan, along the Delhi-Mumbai Industrial Corridor Project.
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