Press Information Bureau

Government of India

Ministry of Commerce & Industry

13-September-2012 17:13 IST

Anand Sharma Addresses State Chief Secretaries and Industry Secretaries on Manufacturing

The Union Minister of Commerce, Industry and Textiles Shri Anand Sharma has explained that the incentives enunciated in the National Manufacturing Policy (NMP) can be availed of by any industrial cluster which is based on a model of self-regulation through a Special Purpose Vehicle. This should address the concerns of the States that are not in position to earmark the land needed for National Manufacturing and Investment Zones. The Government of India has already notified nine such Townships along the Delhi-Mumbai Industrial Corridor with a minimum land area of 5,000 hectares after a strong demand from the concerned State Governments. “For the first time, an effective single window clearance mechanism has been established for this Policy which will enable industrial units to obtain, at one place, various regulatory clearances including those relating to labour and environment” said the minister, addressing the meeting of the State Chief Secretaries and Industry Secretaries on manufacturing here today. Referring to the social dimension of the Manufacturing Shri Sharma said that neither agriculture nor services sector will be able to grow at such a rapid pace to create newer job opportunities for the aspirational youth of India. The manufacturing sector alone holds this potential to create skilled jobs for the rural youth. National Manufacturing Policy announced in October last year aims to raise the share of manufacturing to 25% in the GDP and creating 100 million productive jobs in this sector within a decade.

Outlining the be benefits of the NMP, Shri Sharma said that “we have been able to persuade the Finance Ministry to allow, for the first time, capital gains tax concessions for investing the sale proceeds of a residential property into the productive activity of a small and medium enterprise. We are pushing for allowing these concessions for the sale of landed property also and not only for residential property.” Furthermore, this policy for the first time envisages creation of Technology Acquisition Development Fund which will serve as a patent pool in which industrial units will be able to seek license for a patented technology which will help them in manufacturing.

Expressing concerns on inadequate availability of skilled manpower Shri Sharma said that the manufacturing policy clearly addresses the gap by providing fiscal incentives for establishment of skill development institutions, it is and polytechnics by the private industry.

Shri Sharma also emphasized the need for availability of land for industrial purpose and strongly advocated inclusion of NMIZs and DMIC and other industrial corridors such as Bengaluru-Chennai Corridor and Eastern Corridor in the definition of Public Purpose in the Land Bill. He told that the state governments were advised in advance to create land banks for the policy.

Cabinet Secretary Shri Ajit Seth also addressed the gathering and said that the Government is committed to growth momentum and exhorted the officers to accelerate the clearance for the industrial projects. He said that growth of manufacturing is closely linked with investor confidence and stressed the need to improve the ease of doing business in the country.

The meeting was organized by the National Manufacturing Competitiveness Council (NMCC). NMCC Chairman Dr V Krishnamurthy delivered the Presidential Address. Member Planning Commission, Shri Arun Maira, CII president Shri Adi Godrej, FICCI Vice President Shri Sidharth Birla and Member Secretary, NMCC Shri Ajay Shankar also addressed the Meeting.

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DS/GK

 

Manufacturing incentives enable single window clearances and capital gains tax concessions to boost industrial clusters and technology licensing. National Manufacturing Policy incentives allow industrial clusters formed under a Special Purpose Vehicle model to obtain benefits and use an established single window clearance mechanism for regulatory approvals. The Policy includes capital gains tax concessions for reinvestment into SMEs, proposes a Technology Acquisition Development Fund as a patent pool for licensed technologies, and offers fiscal incentives for industry led skill development institutions. It urges creation of land banks and defining NMIZs and industrial corridors as public purpose in land law to ensure land availability and accelerate project clearances.