Manufacturing policy: Sharma,Natarajan meet to resolve glitches

A Cabinet note on the manufacturing policy is likely to be sent soon.

Commerce and Industry Minister Anand Sharma today met Environment Minister Jayanthi Natarajan to discuss and settle inter-ministerial differences over easing of environmental laws in the proposed manufacturing policy. A Cabinet note on the manufacturing policy is likely to be sent soon. The ministers have reached an understanding to fast-track the resolution of the issues and putting up the policy before the Cabinet as soon as possible, an official statement said.

After the meeting,Sharma said,I think we are in a position now to move forward for taking final view in the matter.

Though the minister showed optimism on the policy,earlier during the day R P Singh,secretary,Department of Industrial Policy and Promotion (DIPP),said there were issues with both the environment and labour ministries. In the draft policy,setting up of National Manufacturing Investment Zones (NMIZs) has been proposed with the flexibility to downsize labour. Similarly,is has been suggested that changes in environment norms should be facilitated if the need be for boosting investment.

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The labour department is citing ILO (International Labour Organisation) obligations … One serious difference of opinion I got is that everybody is talking about (their) sovereign functions,including the Environment (Ministry), Singh said at a Ficci function. Urging the industry and labour unions to talk directly to the labour ministry,he said there was a lukewarm response from the labour ministry on the policy.

However,as regard the tax proposals,the secretary said the revenue department is working on the proposal for extending capital gains tax exemptions on equity investment in NMIZs.

Finally,revenue department has seen merit in this and hopefully they are agreeing to this. Now,we are working modalities with them as to how to check the misuse of this…, he said.

According to the draft,the NMIZs would enjoy all the tax benefits that SEZs and EOUs have.