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 Investment & Manufacturing Zones (NIMZs) are a new initiative by the Indian government to promote investment and manufacturing in the country. The zones are designed to provide a conducive Environment for businesses to operate, with a focus on Ease of Doing Business, infrastructure, and incentives.

The objectives of NIMZs are to:

  • Promote investment and manufacturing in India
  • Create jobs and boost economic Growth
  • Attract Foreign Direct Investment (FDI)
  • Improve the competitiveness of Indian businesses
  • Develop infrastructure and Logistics facilities
  • Promote exports

The location of NIMZs is strategic, with most of them being located near major Ports and Airports. The size of NIMZs varies, with some being as large as 10,000 acres. The infrastructure in NIMZs is world-class, with state-of-the-art roads, power, water, and telecommunications facilities.

The incentives offered by NIMZs are attractive, and include tax breaks, duty exemptions, and land subsidies. The stakeholders in NIMZs include the government, businesses, and the local community. The challenges faced by NIMZs include land acquisition, environmental clearances, and infrastructure development. The opportunities offered by NIMZs are immense, and include job creation, economic growth, and Export Promotion. The way forward for NIMZs is to address the challenges and capitalize on the opportunities.

NIMZs are a key part of the government’s strategy to promote investment and manufacturing in India. The zones offer a number of advantages to businesses, including a conducive environment, world-class infrastructure, and attractive incentives. NIMZs have the potential to create jobs, boost economic growth, and attract FDI. The government should continue to support the development of NIMZs and address the challenges faced by them.

One of the key challenges faced by NIMZs is land acquisition. The government has to acquire land from farmers and other landowners for the development of NIMZs. This can be a difficult and time-consuming process. The government needs to find ways to make the land acquisition process more efficient and transparent.

Another challenge faced by NIMZs is environmental clearances. The government has to obtain environmental clearances from the Ministry of Environment and Forests (MoEF) before developing NIMZs. This can be a lengthy and complex process. The government needs to streamline the environmental clearance process and make it more predictable.

Infrastructure development is another challenge faced by NIMZs. The government has to develop the necessary infrastructure, such as roads, power, water, and telecommunications facilities, before businesses can start operating in NIMZs. This can be a costly and time-consuming process. The government needs to invest in the development of infrastructure in NIMZs.

Despite the challenges, NIMZs offer a number of opportunities to businesses. NIMZs offer a conducive environment for businesses to operate, with world-class infrastructure and attractive incentives. NIMZs have the potential to create jobs, boost economic growth, and attract FDI. The government should continue to support the development of NIMZs and address the challenges faced by them.

What is a free trade zone?

A free trade zone (FTZ) is a special economic zone where goods may be imported, stored, processed, and re-exported without the payment of tariffs or other duties. FTZs are designed to promote Economic Development by attracting foreign investment and businesses.

What are the benefits of a free trade zone?

There are many benefits to operating in a free trade zone, including:

  • Reduced or eliminated tariffs on imported goods
  • Reduced or eliminated customs duties on exported goods
  • Reduced or eliminated taxes on goods and Services produced in the zone
  • Increased efficiency and productivity
  • Increased access to global markets
  • Reduced costs of doing business

How do I set up a business in a free trade zone?

The process of setting up a business in a free trade zone varies from country to country. However, there are some general steps that must be followed, including:

  • Choosing a free trade zone to operate in
  • Obtaining the necessary permits and licenses
  • Registering the business with the relevant authorities
  • Setting up the business infrastructure
  • Hiring employees
  • Starting operations

What are the risks of operating in a free trade zone?

There are some risks associated with operating in a free trade zone, including:

  • The risk of fraud
  • The risk of Corruption
  • The risk of political instability
  • The risk of natural disasters
  • The risk of economic downturn

How can I mitigate the risks of operating in a free trade zone?

There are a number of ways to mitigate the risks of operating in a free trade zone, including:

  • Conducting due diligence on the free trade zone and the country in which it is located
  • Obtaining insurance coverage
  • Hiring experienced professionals to manage the business
  • Having a contingency plan in place

What are the future trends for free trade zones?

The future of free trade zones is uncertain. Some experts believe that free trade zones will continue to grow in popularity, while others believe that they will decline in importance. The future of free trade zones will likely depend on a number of factors, including the global economy, the political Climate, and the regulatory environment.

Question 1

Which of the following is not a type of economic zone?

(A) Free trade zone
(B) Special economic zone
(C) National investment and manufacturing zone
(D) Export processing zone

Answer
(C)

Question 2

Economic zones are typically established to:

(A) Attract foreign investment
(B) Create jobs
(C) Promote exports
(D) All of the above

Answer
(D)

Question 3

Free trade zones are typically characterized by:

(A) Low or no tariffs on imported goods
(B) Few or no restrictions on the movement of goods and people
(C) Special tax breaks for businesses
(D) All of the above

Answer
(D)

Question 4

Special economic zones are typically characterized by:

(A) State-owned enterprises
(B) Foreign investment
(C) Export-oriented industries
(D) All of the above

Answer
(D)

Question 5

Export processing zones are typically characterized by:

(A) Foreign investment
(B) Export-oriented industries
(C) Duty-free imports of raw materials and components
(D) All of the above

Answer
(D)

Question 6

Economic zones have been shown to:

(A) Attract foreign investment
(B) Create jobs
(C) Promote exports
(D) All of the above

Answer
(D)

Question 7

However, economic zones have also been criticized for:

(A) Environmental damage
(B) Labor exploitation
(C) Corruption
(D) All of the above

Answer
(D)

Question 8

Overall, economic zones have been shown to be:

(A) A positive force for development
(B) A negative force for development
(C) Neither a positive nor a negative force for development
(D) It depends on the specific circumstances

Answer
(D)