Centre’s nod for NIMZ in Medak
The government has granted the final approval to the National Investment and Manufacturing Zone (NIMZ) at Zaheerabad in Medak district, Telangana.
- The estimated total investment by the manufacturing industry by the end of the ultimate phase of the NIMZ’s development is Rs.17,300 crore and the employment generation is about 2.77 lakh.
What are National Investment and Manufacturing Zones (NIMZs)?
The National Investment & Manufacturing Zones (NIMZs) are an important instrumentality of the National 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.
Aim: NIMZs aim to provide a productive environment for persons transitioning from the primary to the secondary and tertiary sectors.
What the National Manufacturing Policy (NMP) says?
The National Manufacturing Policy (NMP) has the objective of enhancing the share of manufacturing in GDP to 25% and creating 100 million jobs over a decade. The NMP provides for promotion of clusters and aggregation, especially through the creation of national investment and manufacturing zones (NIMZ).
The National Manufacturing Policy (NMP) provides 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 re-investment 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.
- Simple and expeditious exit mechanism for closure of sick units while protecting labour interests.
- In respect of environmental laws/regulations, inspection by specially trained/designated/notified agencies for third party inspection to supplement the inspection by the Government agencies for compliance monitoring.
Some notable points:
- NIMZ can be proposed with land area of at least 5000 hectares.
- Land will be selected by state governments and preference would be given to uncultivable land.
- NIMZ will be managed by Special Purpose Vehicle, headed by. Govt. officials and experts, including those of environment.
- To enable NIMZs to function as self governing autonomous bodies, they will be declared by the state government as industrial townships under Article 243 Q (c) of the constitution.
- NIMZs will be notified by the central government.