Clear the irritants to New Manufacturing Policy: Tata

The Hindu Minister for Commerce and Industry, Anand Sharma with (from left) Chairman, ITC, Y. C. Deveshwar, Chairman, TVS Motors Company, Venu Srinivasan, Chairman, Tata Group, Ratan Tata, and Chairman, NMCC, V. Krishnamurthy, at the first meeting of the reconstituted National Manufacturing Competiveness Council (NMCC), in New Delhi on Friday. P

Differences persist DIPP and labour and environment ministries

Without elaborating on the hindrances, Tata Group Chairman Ratan Tata on Friday said that there were many roadblocks on the way to the implementation of the New Manufacturing Policy but said at least a good beginning had been made.

Talking to journalists after the first meeting of the revamped National Manufacturing Competitiveness Council (NMCC), Mr. Tata said there might be many roadblocks on the way to make the policy actually implementable on ground. “We are on that path and I think it is significant that a policy has been established and the government intends to stand by it,” he said.

However, the Tata Group chairman refused to elaborate on the hindrances that came in the way of smooth implementation of the policy. Things needed to be resolved, he merely said. The policy has been stuck due to failure of the labour, environment and finance ministries to issue notifications on the new policy despite the Union Cabinet having cleared it nearly four months ago.

The new policy intends to establish National Manufacturing and Investment Zones (NMIZs), including the ambitious Delhi-Mumbai Industrial Corridor (DMIC). It has projected creation of 100 million new jobs by 2022. Mr. Tata said that all the members present at the meeting appreciated the policy and discussed about the ways to accelerate manufacturing in the country.

The Labour and Environment Ministries have locked horns with the Department of Industry over the issue of certain relaxations of labour and environmental laws in the new manufacturing zones.

Commerce and Industry Minister Anand Sharma, who was also present at the meeting, said that by the end of March, all the departments were expected to notify the policy.

“The policy as such is notified. There are some notifications that need to be aligned with the Cabinet decision which is happening. I am sure by the end of next month, things will fall in line,” he added.

Besides, fiscal sops are proposed. While the Cabinet approved the NMP in October 2011, there were differences between the Department of Industrial Policy and Promotion (DIPP), on the one hand, and the ministries of labour and environment, on the other.

The meeting was chaired by industry veteran, V. Krishnamurthy. NMCC is an inter-disciplinary body which serves as a forum for promoting coherent policies for the manufacturing sector.