Under schemes of various manufacturing Ministries/ Departments, assistance is provided as per scheme parameters for setting up of sector-oriented industrial parks. Among the schemes administered by the Department of Industrial Policy and Promotion, under the schemeof Mega Leather Cluster, Government of India provides graded assistance based on size (area in acres) limited to a certain fixed percentage of the project cost as grant in aid for all components of the project, except the cost of the land, subject to a maximum ceiling of Rs.125 crore per cluster.Under the Industrial Infrastructure Upgradation Scheme (IIUS)as recast in 2009,central assistance upto 75% of the project cost subject to a ceiling of Rs.60 crore to each project was being provided. According to the Modified Industrial Infrastructure Upgradation Scheme (MIIUS) notified on 18.07.2013, central grant upto 50% of the project cost with a ceiling of Rs 50 crore with minimum State Implementing Agency’s contribution of 25%, is provided, and in case of North Eastern States, the central grant and the minimum contribution of the State Implementing Agency is 80% and 10% respectively.

Besides, the Government has notified the National Manufacturing Policy (NMP) under which National Investment and Manufacturing Zones (NIMZs) can be set up. These NIMZs are conceptualized as integrated industrial townships with all important elements necessary to help the growth of manufacturing. NMP identifies employment intensive industries like textiles and garments; leather and footwear; gems and jewellery and food processing, etc. as special focus sectors where India has potential of being cost competitive and potential of generating maximum employment. NMP aims at creating a 100 million jobs within a decade and provides for appropriate interventions.

The Twelfth Plan recognizes that there is a need to move up from investing 1 percent of Gross Domestic Product(GDP) in R&D to 2 per cent of GDP and more, and also that this needs to be achieved both through an additional Government effort and a much increased private sector effort. The sectoral allocation for Science, Technology and Environment (which includes allocation for R&D) in the 12th Five Year Plan indicates an outlay ofRs1,67,350 crore as compared to Rs 69,297 crore in the 11th Five Year Plan.

The information was given by the Minister of State in the Ministry of Commerce and Industry Dr. E.M. Sudarsana Natchiappan in Rajya Sabha today.

Central grant support for industrial parks restructured with revised eligibility rules and mandatory state implementing agency contribution requirements. Central grant assistance frameworks for sectoral private industrial parks provide graded grant aid excluding land costs under the Mega Leather Cluster scheme and revised central support under the Modified Industrial Infrastructure Upgradation Scheme, which sets central grant percentages, project ceilings and mandatory State Implementing Agency contributions with special provisions for North Eastern States. The National Manufacturing Policy advances National Investment and Manufacturing Zones as integrated industrial townships focused on employment intensive sectors and calls for increased public and private investment in research and development to support manufacturing growth.