National Investment & Manufacturing Zones (NIMZs)
National Investment & Manufacturing Zones (NIMZs) are one of the important instruments of National Manufacturing Policy, 2011. NIMZs are envisaged as large areas of developed land with the requisite ecosystem for promoting world class manufacturing activity. So far, three NIMZs namely Prakasam (Andhra Pradesh), Sangareddy (Telangana) and Kalinganagar (Odisha) have been accorded final approval and 13 NIMZs have been accorded in-principal approval. The details of these 13 NIMZs are given at Annexure. Besides these, eight Investment Regions along the Delhi Mumbai Industrial Corridor (DMIC) project have also been declared as NIMZs.
Objectives of NMIZ
To promote investments in the manufacturing sector and make the country a hub for both domestic and international markets:
- To increase the sectoral share of manufacturing in GDP to 25% by
- To double the current employment level in the sector
- To enhance global competitiveness of the sector
The details of thirteen NIMZs have been accorded in-principle approval are as under:
- Nagpur in Maharashtra
- Chittoor in Andhra Pradesh
- Hyderabad Pharma NIMZ in Rangareddy District, Telangana
- Tumkur in Karnataka
- Kolar in Karnataka vi. Bidar in Karnataka
- Gulbarga in Karnataka
- Ramanathapuram District in Tamil Nadu
- Ponneri Taluk, Thiruvallur District in Tamil Nadu
- Auraiya District in Uttar Pradesh and
- Jhansi District in Uttar Pradesh
- Ahmedabad and Mehsana District of Mandal-Becharaji Special Investment Region, Gujarat
- Ahmedabad District of Mandal-Becharaji Special Investment Region, Gujarat.
Salient Features of NIMZ are as follows:
- National Investment and Manufacturing Zones (NIMZ) equipped with world-class infrastructure that would be autonomous and self-regulated developed in partnership with the private sector.
- Each National Investment and Manufacturing Zonesto have 5,000 hectares.
- Land will be selected by State Governments.
- Preference would be given to uncultivable land.
- Both state and central Government would fund trunk infrastructure.
- The policy embodies an easy exit policy and single window clearance in zones.
- The NIMZ would be managed by special entity.
- The policy has envisaged fiscal sops to boost manufacturing.
- Small & medium enterprises to be reimbursed for technology purchase.
- Flexible labor laws and simplified & expeditious exit mechanism for sick units.
- Relaxation in environmental regulations.
- Financial and tax incentives to small and medium enterprises.
- Incentives to states for infrastructure development Incentives for Green Manufacturing.
- Rationalization of business regulations to reduce burden of procedural and regulatory compliance on businesses.
- Increased focus on employment intensive industries, capital goods industry, industries with strategic significance and those in which India enjoys a competitive edge and the SME sector.
The National Manufacturing Policy (NMP) provides inter-alia for:
- Relief from Capital Gains Tax on sale of plant and machinery of a unit located in a National Investment and Manufacturing Zone (NIMZ) in case of re-investment of sale consideration within a period of three years for purchase of new plant & machinery in any other unit located in the same NIMZ or another NIMZ.
- Rollover relief from long term Capital Gains tax to individuals on sale of a residential property (house or plot of land) in case of reinvestment of sale consideration in the equity of a new start-up SME company in the manufacturing sector for the purchase of a new plant and machinery.
- Tax pass-through status for Venture Capital Funds with a focus on SMEs in the manufacturing sector. These VCFs will be required to be registered under the Securities and Exchange Board of India (Venture Capital Funds) Regulations 1996 and appropriately notified under the Income Tax Act.
The details of eight Investment Regions along the Delhi Mumbai Industrial Corridor (DMIC) project have been declared as NIMZs are as under:
- Ahmedabad-Dholera Investment Region, Gujarat
- Pithampur-Dhar-Mhow Investment Region, Madhya Pradesh
- Shendra-Bidkin Industrial Park city near Aurangabad, Maharashtra
- Dighi Port Industrial Area, Maharashtra
- Manesar-Bawal Investment Region, Haryana
- Khushkhera-Bhiwadi-Neemrana Investment Region, Rajasthan
- Jodhpur-Pali-Marwar Region in Rajasthan
- Dadri-Noida-Ghaziabad Investment Region, Uttar Pradesh
BPCS Notes brings Prelims and Mains programs for BPCS Prelims and BPCS Mains Exam preparation. Various Programs initiated by BPCS Notes are as follows:-