Anand Sharma Rules Out Relaxation in Land Norms for NIMZs

Chandigarh (I-Haryana News): India’s Minister for Commerce, Industry and Textiles, Mr Anand Sharma has categorically stated that it is not possible to reduce the land size of National Investment and Manufacturing Zones (NIMZs) as per National Manufacturing Policy.

In reply to a question Mr Anand Sharma said that since the implementation of Foreign Direct Investment (FDI) policy a huge investment has been received, which reflects faith of foreign investors.

When an online journalist asked Mr. Anand Sharma about his decision on Haryana’s Government demand to relax the Land size norm of 5000 hectares to establish National Industrial Manufacturing Zone, Union minister along with Chief Minister of Haryana, Mr. Hooda confirmed that they have discussed the issue in detail and Commerce and Industry Minister further told that it is not possible to give relaxation in size of NIMZ as it is based on National Manufacturing Policy for whole of India.

As National Manufacturing Policy of India, the National Investment and Manufacturing Zones (NIMZs) will be developed as integrated industrial townships with state-of-the art infrastructure and land use on the basis of zoning; clean and energy efficient technology; necessary social infrastructure; skill development facilities, etc., to provide a productive environment to persons transitioning from the primary sector to the secondary and tertiary sectors. 

These NIMZs would be managed by SPVs which would ensure master planning of the Zone; pre-clearances for setting up the industrial units to be located within the zone and undertake such other functions as specified in the various sections of this policy. 

To enable the NIMZ to function as a self governing and autonomous body, it will be declared by the State Government as an Industrial Township under Art 243 Q(c) of the Constitution. 

In sum, the NIMZs would be large areas of developed land, with the requisite eco-system for promoting world class manufacturing activity. They would be different from SEZs in terms of size, level of infrastructure planning, and governance structures related to regulatory procedures and exit policies. 

 Land for NIMZs

(a) Size of land for NIMZ – An NIMZ would have an area of at least 5000 hectares in size.

(b) Availability of land- The State Government will be responsible for selection of land suitable for development of the NIMZ including land acquisition if necessary. The land may constitute:

i. Government owned land;

ii. Private lands falling within the proposed NIMZ, to be acquired by the State Government;

iii. Land under existing industrial areas/estates/sick and defunct units including PSUs.

Guiding principles- Following guiding principles will be applied by the State Government for the purpose:

i. Preferably in waste lands; infertile and dry lands not suitable for cultivation;

ii. Use of agricultural land to the minimum.

iii. All acquisition proceedings to specify a viable resettlement and rehabilitation plan;

iv. Reasonable access to basic resources like water;

v. It should not be within any ecologically sensitive area or closer than the minimum distance specified for such an area.

(c) Ownership – It is left to the State Government to adopt a model that it considers most workable. It may:

i) Keep the ownership with state government itself;

ii) transfer the ownership to a state government undertaking;

iii) Have joint ownership with a private partner;

iv) Adopt any other appropriate model.

(d) Irrespective of the model adopted, the state government will ensure that the land can be mortgaged by the prospective allottees for securing financial assistance from banks/FIs.

(e) After identification of the land, it will be the responsibility of the state government to get the environmental impact study conducted for a prospective NIMZ. DIPP in consultation with Ministry of Environment & Forests will notify designated agencies for conducting the study.

(f) At least 30% of the total land area proposed for the NIMZ will be utilized for location of manufacturing units. The states may reserve a certain percentage of the land as appropriate, in a zone, for MSMEs.

(g) The State Government will bear the cost of the resettlement & rehabilitation package for the owners of acquired lands, if any. An arrangement to recover the costs could be put in place in collaboration with the SPV.

 Administrative Structure for NIMZs

The administrative structure of NIMZ will comprise of a Special Purpose Vehicle, a developer, State Government and the Central Government.

While answering a question on Target set by Commerce and Industry Ministry to double the export of India during 2011-12 to 201-14( Three years), Mr. Minister told that his ministry is working hard to meet the target set by strategy document released in 2009 in present economic, still here is around two year to meet the target.

As per strategy document following targets for various sectors were made:

    Source: www.commerce.nic.in

As per above table the prioritize sectors from which the Commerce and Industry Ministry has eyed were Engineering goods and Gems and jewellery, where in 2013-14 it has projected their respective share in Country total export would be 25percent and 14 percent. 

Source: Intelligent Haryana News

Dinesh Singh Rawat's View:

As an online Research Journalist I was present on the press conference addressed by  Mr. Anand Sharma , union minister for Commerce and Industry and Mr. Bhpinder Singh Hooda , Chief Minister, Haryana on Thursday.

When I asked Mr. Sharma about demand made by Haryana to relax the land norms to establish National investment and manufacturing zones in Haryana, as present National Manufacturing policy requires 5000 hactres land , the union minister and Haryana  Chief Minister both confirmed that they have discussed the issue in detailed.

Further, Minister for  Commerce and Industry told that it is not possible to relax land norms to establish NIMZs mandated by National policy.

Here, I am of view that agricultural hub states like Haryana and Punjab which have maximum of their land as fertile land  should get land size  relaxation in establishing NIMZs  keeping in view their contribution in national food basket.

As land in these both states are more valuable for nation than those rest of the states.

On doubling the export of India in three years(2011-12 to 2013-14) Mr. Anand Sharma accepted that in present economic condition in India, his ministry is trying hard to meet target set in strategy document released by Ministry of Commerce and industry in 2009. 

I, as researcher sees that doubling the export could not be achieved in timeline fixed in released document in 2009, but still India is perform fair in present situation.