Difference Between NIMZs and SEZs: Establishment of National Investment & Manufacturing Zones (Download PDF)

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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 eco-system for promoting excellent manufacturing activity.

Image Of Investment & Manufacturing Zone

Image Of Investment & Manufacturing Zone

Image Of Investment & Manufacturing Zone

Objective

  • Based on the principle of industrial growth in partnership with States and focuses on manufacturing growth and employment generation.

  • To provide a conducive environment for manufacturing industries.

Difference Between NIMZs and SEZs

  • NIMZs are different from SEZs in terms of size, level of infrastructure planning, governance structures related to regulatory procedures, and exit policies.

  • Ranging from 50 square kilometers to 900 square kilometers, each NIMZ will be much larger than a traditional Special Economic Zone (SEZ), but will retain the latter’s characteristics with flexible rules and regulations.

About NIMZs

  • The NIMZs are central to the government’s national manufacturing policy, which aims to increase the share of manufacturing to 25 percent of the country’s GDP while also creating 100 million jobs over the next decade. Manufacturing currently accounts for 16 percent of India’s economic output.

  • NIMZs have been conceived as large 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. ,

  • To enable the NIMZ to function as a self-government and autonomous body, it will be declared by the State Government as a Industrial Township under Article 243 Q (I) (c) of the Constitution.

  • These NIMZs would be managed by a Special Purpose Vehicle (SPV) 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 the policy. The policy mandates that the SPV in a zone will be headed by a senior government official and will include inter-alia an official expert conversant with the work relating to pollution control/environment protection.

  • The proposals in the policy are generally sector neutral, location neutral and technology neutral except incentivisation of green technology.

  • While the NIMZ are an important instrumentality, the proposals contained in the Policy apply to manufacturing industry throughout the country including wherever industry is able to organize itself into clusters and adopt a model of self-regulation as enunciated in the policy.

  • 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-principle approval.

  • Nine NIMZs outside the Delhi-Mumbai Industrial Corridor (DMIC) region given in-principle approval are (i) Nagpur in Maharashtra; (ii) Tumkur in Karnataka (iii) Bidar in Karnataka; (iv) Kolar in Karnataka; (v) Gulabarga in Karnataka; (vi) Chittoor in Andhra Pradesh (vii) Medak in Telangana; (viii) Prakasam in Andhra Pradesh; and recently at (ix) Kalinganagar, Jajpur district in Odisha.

  • Eight Investment Regions along the Delhi-Mumbai Industrial Corridor (DMIC) project nodes have also been accorded in principle approval as NIMZs. The details are as under:

  1. Ahmedabad-Dholera Investment Region, Gujarat;

  2. Shendra-Bidkin Industrial Park city near Aurangabad, Maharashtra;

  3. Manesar-Bawal Investment Region, Haryana;

  4. Khushkhera-Bhiwadi-Neemrana Investment Region, Rajasthan;

  5. Pithampur-Dhar-Mhow Investment Region, Madhya Pradesh;

  6. Dadri-Nodia-Ghaziabad Investment Region, Uttar Pradesh;

  7. Dighi Port Industrial Area, Maharashtra; and

  8. Jodhpur-Pali-Marwar Region in Rajasthan.

In the construction of these zones, the Indian government envisions a prominent role for the private sector and is planning to provide incentives for infrastructure development funded through PPP.

Progress of the Project

  • The Government has made progress on the issue of rationalization and simplification of business regulations:

  • The States have been requested to identify land banks for setting up of the National Investment and Manufacturing Zones and to initiate the process of rationalization and simplification of state level business regulations.

  • Ministry of Labour and Employment has issued the advisory on simplification & rationalization of business regulations and skill development.

  • The Manufacturing Industry Promotion Board (MIPB), Green Manufacturing Committee (GMAC) and the High Level Committee (HLC) envisaged in the monitoring and approval mechanism of NMP have been set up.

  • A scheme component on Master Planning of NIMZ under the Plan ‘Scheme for implementation of NMP’ has been approved.

  • Guidelines for establishment of NIMZ and proforma for final approval of NIMZ has been prepared and circulated to all State Governments.

  • Definition of Cluster, and guidelines for dispensations for such Clusters outside NIMZ under the NMP has been prepared and circulated to all State Governments.

- Published/Last Modified on: February 11, 2019

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