BUSINESS

Issues on new manufacturing policy will be sorted out: Sharma

Anand Sharma

Anand Sharma  

Union Commerce and Industry Minister Anand Sharma on Friday said he would be meeting Finance Minister Pranab Mukherjee and Environment Minister Jayanthi Natarajan next week to work out a consensus on the proposed National Manufacturing Policy.

“We are at the last stage of the policy. I would be meeting the Finance Minister and the Environment Minister next week to sort out the inter-ministerial issues to pave the way for the passage and approval of the policy by the Union Cabinet,'' Mr. Sharma told reporters. Earlier, Mr. Sharma was scheduled to meet Ms. Natarajan on Thursday but the meeting was postponed.

Prime Minister Manmohan Singh had called a meeting of key ministers last month in the backdrop of differences of the ministries of environment, labour and finance with the Department of Industrial Policy and Promotion (DIPP).

The draft policy was given in-principle approval and a committee of secretaries, chaired by Prime Minister's Principal Secretary. T.K.A. Nair has been asked to work out a consensus. The concept paper floated by the DIPP proposes easing of labour and environment laws and seeking tax sops for national manufacturing investment zones (NMIZs), planned big enclaves which could even subsume special economic zones and export oriented units (EOUs). However, the labour, environment and finance ministries have their reservation on the proposal.

Additionally, units get a 50 per cent exemption for the next five years and another 50 per cent exemption on re-invested profits in the following five years. Mr. Sharma would also meet Labour and Employment Minister Mallikarjun Kharge. India aims to increase the share of the manufacturing sector, which contributes over 80 per cent to the country's overall industrial production, from 16-17 per cent to 25-26 per cent of the GDP by 2020. The draft policy aims to create 100 million new jobs and taking the share of manufacturing to 25 per cent in the country's GDP by 2025.

To meet Finance and Environment Ministers next week

Recommended for you