Mains Booster-National Investment & Manufacturing Zones (NIMZs)

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Investment/”>National Investment & Manufacturing Zones (NIMZs)

National Investment & Manufacturing Zones (NIMZs) are one of the important instruments of National Manufacturing Policy, 2011. NIMZs are envisaged as large areas of developed land with the requisite ecosystem for promoting world class manufacturing activity. So far, three NIMZs namely Prakasam (Andhra Pradesh), Sangareddy (Telangana) and Kalinganagar (Odisha) have been accorded final approval and 13 NIMZs have been accorded in-principal approval. The details of these 13 NIMZs are given at Annexure. Besides these, eight Investment Regions along the Delhi Mumbai Industrial Corridor (DMIC) project have also been declared as NIMZs.

Objectives of NMIZ

To promote investments in the manufacturing sector and make the country a hub for both domestic and international markets:

  • To increase the sectoral share of manufacturing in GDP to 25% by
  • To double the current EMPLOYMENT level in the sector
  • To enhance global competitiveness of the sector

The details of thirteen NIMZs have been accorded in-principle approval are as under:

  • Nagpur in Maharashtra
  • Chittoor in Andhra Pradesh
  • Hyderabad Pharma NIMZ in Rangareddy District, Telangana
  • Tumkur in Karnataka
  • Kolar in Karnataka vi. Bidar in Karnataka
  • Gulbarga in Karnataka
  • Ramanathapuram District in Tamil Nadu
  • Ponneri Taluk, Thiruvallur District in Tamil Nadu
  • Auraiya District in Uttar Pradesh and
  • Jhansi District in Uttar Pradesh
  • Ahmedabad and Mehsana District of Mandal-Becharaji Special Investment Region, Gujarat
  • Ahmedabad District of Mandal-Becharaji Special Investment Region, Gujarat.

Salient Features of NIMZ are as follows:

  • National Investment and Manufacturing Zones (NIMZ) equipped with world-class Infrastructure-2/”>INFRASTRUCTURE that would be autonomous and self-regulated developed in PARTNERSHIP with the private sector.
  • Each National Investment and Manufacturing Zonesto have 5,000 hectares.
  • Land will be selected by State Governments.
  • Preference would be given to uncultivable land.
  • Both state and central Government would fund trunk infrastructure.
  • The policy embodies an easy exit policy and single window clearance in zones.
  • The NIMZ would be managed by special entity.
  • The policy has envisaged fiscal sops to boost manufacturing.
  • Small & medium enterprises to be reimbursed for technology purchase.
  • Flexible labor laws and simplified & expeditious exit mechanism for sick units.
  • Relaxation in environmental regulations.
  • Financial and tax incentives to small and medium enterprises.
  • Incentives to states for Infrastructure Development Incentives for Green Manufacturing.
  • Rationalization of business regulations to reduce burden of procedural and regulatory compliance on businesses.
  • Increased focus on employment intensive industries, Capital Goods Industry, industries with strategic significance and those in which India enjoys a competitive edge and the SME sector.

The National Manufacturing Policy (NMP) provides inter-alia 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 reinvestment 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.
  • Tax pass-through status for Venture Capital Funds with a focus on SMEs in the manufacturing sector. These VCFs will be required to be registered under the Securities and Exchange Board of India (Venture Capital Funds) Regulations 1996 and appropriately notified under the Income tax Act.

The details of eight Investment Regions along the Delhi Mumbai Industrial Corridor (DMIC) project have been declared as NIMZs are as under:

  • Ahmedabad-Dholera Investment Region, Gujarat
  • Pithampur-Dhar-Mhow Investment Region, Madhya Pradesh
  • Shendra-Bidkin Industrial Park city near Aurangabad, Maharashtra
  • Dighi Port Industrial Area, Maharashtra
  • Manesar-Bawal Investment Region, Haryana
  • Khushkhera-Bhiwadi-Neemrana Investment Region, Rajasthan
  • Jodhpur-Pali-Marwar Region in Rajasthan
  • Dadri-Noida-Ghaziabad Investment Region, Uttar Pradesh

 

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National Industrial Manufacturing Zones (NIMZs) are a new type of industrial park being developed in India. They are designed to be large-scale, integrated industrial clusters that will provide a world-class Environment for manufacturing companies. NIMZs will offer a range of benefits to companies, including access to a skilled workforce, infrastructure, and Logistics facilities. They will also be located in strategic locations with good access to markets.

The objectives of NIMZs are to:

  • Promote industrial development and investment in India
  • Create jobs and boost economic Growth
  • Attract Foreign Direct Investment (FDI)
  • Improve the competitiveness of Indian manufacturing
  • Promote exports

The benefits of NIMZs include:

  • Access to a skilled workforce
  • Infrastructure, including roads, power, water, and telecommunications
  • Logistics facilities, such as Ports and Airports
  • Proximity to markets
  • Fiscal incentives, such as tax breaks and subsidies
  • Support from the government, such as land acquisition and clearances

NIMZs are being located in strategic locations across India, with good access to markets. The first NIMZ is being developed in Dholera, Gujarat, and others are planned for Chennai, Bangalore, and Visakhapatnam.

The development process of NIMZs is being led by the Ministry of Commerce and Industry. The government has appointed a Special Purpose Vehicle (SPV) to develop each NIMZ. The SPV will be responsible for land acquisition, infrastructure development, and Marketing the NIMZ to potential investors.

There are a number of investment opportunities in NIMZs. Companies can invest in land, infrastructure, or manufacturing facilities. The government has also announced a number of fiscal incentives to encourage investment in NIMZs.

NIMZs face a number of challenges, including land acquisition, environmental clearances, and infrastructure development. The government is working to address these challenges and ensure that NIMZs are successful.

The way forward for NIMZs is positive. The government is committed to developing NIMZs and providing a world-class environment for manufacturing companies. NIMZs have the potential to transform the Indian manufacturing sector and boost economic growth.

In addition to the above, here are some additional information about NIMZs:

  • NIMZs will be developed on a public-private partnership (PPP) basis.
  • The government will provide land and infrastructure, while private companies will invest in manufacturing facilities.
  • NIMZs will be governed by a special purpose vehicle (SPV) set up by the government.
  • The SPV will be responsible for land acquisition, infrastructure development, and marketing the NIMZ to potential investors.
  • NIMZs will offer a range of fiscal incentives to attract investment, including tax breaks, subsidies, and duty exemptions.
  • NIMZs are expected to create millions of jobs and boost economic growth in India.

What are NIMZs?

NIMZs are National Investment and Manufacturing Zones. They are large industrial parks that are designed to attract investment and promote manufacturing. NIMZs are being developed in various parts of India, and they offer a number of benefits to investors, including:

  • Proximity to ports and other infrastructure
  • Access to skilled labor
  • Tax breaks and other incentives

What are the benefits of NIMZs?

NIMZs offer a number of benefits to investors, including:

  • Proximity to ports and other infrastructure: NIMZs are located in areas that are well-connected to ports and other infrastructure, which makes it easy to import and export goods. This can save businesses a significant amount of time and Money.
  • Access to skilled labor: NIMZs are located in areas that have a large pool of skilled labor. This can make it easier for businesses to find the workers they need.
  • Tax breaks and other incentives: The government offers a number of tax breaks and other incentives to businesses that invest in NIMZs. This can help to reduce the cost of doing business and make it more profitable for businesses.

What are the challenges of NIMZs?

NIMZs face a number of challenges, including:

  • Land acquisition: One of the biggest challenges facing NIMZs is land acquisition. The government needs to acquire large tracts of land in order to develop NIMZs, and this can be a difficult and time-consuming process.
  • Environmental concerns: NIMZs can also face environmental concerns. The construction of NIMZs can lead to the destruction of forests and other natural habitats. This can have a negative impact on the environment.
  • Social unrest: NIMZs can also lead to social unrest. The construction of NIMZs can displace people from their homes and land. This can lead to protests and other forms of social unrest.

What is the future of NIMZs?

The future of NIMZs is uncertain. The government has ambitious plans for NIMZs, but there are a number of challenges that need to be addressed before NIMZs can be successful. If the government can overcome these challenges, NIMZs have the potential to be a major driver of economic growth in India.

Question 1

Which of the following is not a feature of NIMZs?

(A) They are located in areas with good infrastructure and connectivity.
(B) They are designed to attract investment in manufacturing and related activities.
(C) They offer a range of fiscal and non-fiscal incentives to investors.
(D) They are governed by a special purpose vehicle.

Answer

(D) NIMZs are governed by the National Investment and Manufacturing Zones Development Corporation (NIMZDCL), which is a special purpose vehicle set up by the Government of India.

Question 2

Which of the following is not a benefit of setting up an NIMZ?

(A) Access to a skilled workforce.
(B) Proximity to raw materials and markets.
(C) Availability of land and infrastructure.
(D) Exemption from customs duty on imported capital goods.

Answer

(D) NIMZs are not exempt from customs duty on imported capital goods. However, they do enjoy a number of other benefits, such as a 100% tax exemption on profits for the first five years, a 50% tax exemption for the next five years, and a 30% tax exemption for the next five years.

Question 3

Which of the following is not a challenge faced by NIMZs?

(A) Land acquisition.
(B) Delays in infrastructure development.
(C) Lack of skilled workforce.
(D) Competition from other countries.

Answer

(D) NIMZs do face competition from other countries, but this is not the only challenge they face. Land acquisition and delays in infrastructure development are also major challenges.

Question 4

Which of the following is not a goal of NIMZs?

(A) To promote investment in manufacturing.
(B) To create jobs.
(C) To boost exports.
(D) To reduce regional disparities.

Answer

(D) The goal of NIMZs is to promote investment in manufacturing, create jobs, and boost exports. They are not specifically designed to reduce regional disparities.

Question 5

Which of the following is not a type of industry that is eligible for setting up in an NIMZ?

(A) Manufacturing.
(B) Services.
(C) Infrastructure.
(D) IT and ITES.

Answer

(B) Services are not eligible for setting up in an NIMZ. The eligible industries are manufacturing, infrastructure, and IT and ITES.