National Investment and Manufacturing Zones (NIMZ)

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Relevance

GS-3 Indian Economy and issues relating to planning, mobilization of resources, growth, development 

Context: Recently, the Government of India has granted the final approval to three National Investment and Manufacturing Zones (NIMZ), namely Prakasam (Andhra Pradesh), Sangareddy (Telangana) and Kalinganagar (Odisha).

Background

  • The National Investment & Manufacturing Zones (NIMZs) are an important instrumentality of the manufacturing policy.
  • The NIMZs are envisaged as integrated industrial townships with state of the art infrastructure; land use on the basis of zoning; clean and energy-efficient technology; necessary social infrastructure; skill development facilities etc. to provide a productive environment for persons transitioning from the primary to the secondary and tertiary sectors.
  • The policy is based on the principle of industrial growth in partnership with the States.
  • The Central Government will create the enabling policy framework, provide incentives for infrastructure development on a Public-Private Partnership (PPP) basis through appropriate financing instruments, and State Governments will be encouraged to adopt the instrumentalities provided in the policy.
  • The Government of India had notified the National Manufacturing Policy (NMP) in 2011 with the objective of enhancing the share of manufacturing in GDP to 25% and creating 100 million jobs by 2022. National Investment and Manufacturing Zones (NIMZs) are one of the important instruments of the policy to achieve these objectives.
  • So far, the Government of India has granted ‘in-principle’ approval to the sixteen NIMZs (outside the DMIC region) and eight Investment Regions along the Delhi Mumbai Industrial Corridor (DMIC) project. More about National Investment and Manufacturing Zones (NIMZ).

  • The NIMZs are envisaged as integrated industrial townships with state of the art infrastructure, land use on the basis of zoning, clean and energy-efficient technology, necessary social infrastructure, skill development facilities, etc. to promote world-class manufacturing activities.
  • At least 30% of the total land area proposed for the NIMZ will be utilized for the location of manufacturing units.
  • The land for these zones will preferably be waste infertile land not suitable for cultivation, not in the vicinity of any ecologically fragile area and with reasonable access to basic resources.
  • On receipt of final approval, the NIMZ will be declared by the State Government as an industrial township under Article 243Q(1)(c) of the Constitution.
  • The central government provides external physical infrastructure linkages to the NIMZs including rail, road, ports, airports, and telecom, in a time-bound manner and also provides viability gap funding wherever required.
  • The State Government will constitute a Special Purpose Vehicle (SPV) to discharge the functions specified in the policy.
  • The SPV will prepare a strategy for the development of the zone and an action-plan for self-regulation to serve the purpose of the policy.
  • The Department for Promotion of Industry and Internal Trade (former DIPP) is the nodal agency for NIMZ.


Difference between NIMZ and Special Economic Zone

BASIS OF DIFFERENCE NIMZ SEZ
Legislative Backing Under the National Manufacturing Policy (NMP) in 2011 under the Special Economic Zones Act, 2005
Minimum Area 5000 hectares 10-1000 hectares (depending on the sector)
Maximum Area Not Specified 5000 hectares
Income tax exemption  To small and medium enterprises 100% for the first 5 years,
50% for the next five years
Environmental Impact Assessment Provided by the state government By the project developer



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