Manufacturing policy: Sharma to meet FM, Environment Minister next week
The draft policy was given an in-principle approval and a committee of secretaries, chaired by Prime Minister's Principal Secretary TKA Nair, has been asked to work out a consensus.
By PTI | Updated:
NEW DELHI: With a view to reaching inter-ministerial consensus on the proposed manufacturing policy, Commerce and Industry Minister Anand Sharma will meet next week Finance Minister Pranab Mukherjee and new Environment Minister Jayanthi Natarajan.
"We are nearing at the last stage of the policy," Sharma today said adding he would meet Mukherjee soon. A meeting with Natarajan was scheduled today but has since been postponed for next week.
Prime Minister Manmohan Singh had called a meeting of the 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 an in-principle approval and a committee of secretaries, chaired by Prime Minister's Principal Secretary TKA Nair, has been asked to work out a consensus.
A concept paper of 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, ministries of environment, finance and labour have their reservation on the proposal.
According to the paper, the NMIZs would enjoy all the tax benefits that the SEZs and EOUs have.
Under the SEZ Act, units get 100 per cent tax exemption on profits earned for the first five years, while developers get exemption for 10 years. 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.
Sharma would also meet Labour and Employment Minister Mallikarjun Kharge.
India aims to increase the share of 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 gross domestic product 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.
"We are nearing at the last stage of the policy," Sharma today said adding he would meet Mukherjee soon. A meeting with Natarajan was scheduled today but has since been postponed for next week.
Prime Minister Manmohan Singh had called a meeting of the 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 an in-principle approval and a committee of secretaries, chaired by Prime Minister's Principal Secretary TKA Nair, has been asked to work out a consensus.
A concept paper of 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, ministries of environment, finance and labour have their reservation on the proposal.
According to the paper, the NMIZs would enjoy all the tax benefits that the SEZs and EOUs have.
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Under the SEZ Act, units get 100 per cent tax exemption on profits earned for the first five years, while developers get exemption for 10 years. 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.
Sharma would also meet Labour and Employment Minister Mallikarjun Kharge.
India aims to increase the share of 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 gross domestic product 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.
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