Cabinet to take up National Manufacturing Policy on Thursday

September 14, 2011 07:50 pm | Updated 07:50 pm IST - NEW DELHI:

Notwithstanding the objections by the Environment and Forests Ministry and a tough stand taken by the Labour Ministry, the Union Cabinet is likely to take up on Thursday the issue of granting approval to the National Manufacturing Policy as well as the $90-billion Delhi-Mumbai Industrial Corridor (DMIC) project.

The National Manufacturing Policy aims at creating 100 million jobs and take 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 Prime Minister Manmohan Singh in June had faced some opposition from the Ministries of Labour and Environment. However, it is understood that while some of the concerns of the Labour Ministry had been addressed, the Environment Ministry is still adamant on certain issues that are part of the policy.

The Cabinet note moved by the Union Commerce Ministry suggests that besides fiscal sops, the units in the proposed National Manufacturing Investment Zones (NMIZs) should be exempted from the labour and environment laws, something that could face stiff opposition in the Cabinet, especially in view of the recent agitations that have been witnessed across the country over the land acquisition issue. The national manufacturing zones, which may 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.

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