India is set to create its own versions of China-style mega industrial cities peppered across the country equipped with production units, public utilities, residential areas, schools and hospitals. A group of ministers (GoM) headed by agriculture minister Sharad Pawar ironed out inter-ministerial differences on the national manufacturing policy (NMP) on Friday paving the way for setting up of such townships.
The policy, if approved, will allow for rationalisation and simplification of business regulations, simple and expeditious exit mechanism for closure of sick units, skill upgradation, incentives for small industries, etc.
Commerce and industry minister Anand Sharma agreed to the proposal that the environment ministry will be empowered to approve a certain category of projects.
Sharma also acceded to the labour ministry’s opposition on the original proposal of outsourcing of inspection of the national manufacturing industrial zones (NMIZs) to third parties and easier exit policies that could empower companies to execute a “hire and fire policy” at will.
The policy, which has been in the works for the last two years, is aimed at augmenting manufacturing’s share in India’s GDP from about 17% to 25% in the next 15 years.
Sharma will present a re-drafted NMP at the next meeting of the GoM that will give its final recommendations on the policy that aims to create 100 million additional jobs by 2025.
A fund will be established as a trust which would be empowered to raise long-term debt finance at attractive rates from institutions and also raise tax free bonds. A special purpose vehicle (SPV) would also be created.