Amid continued slowdown in the manufacturing sector,the Manufacturing Industry Promotion Board (MIPB) on Tuesday held its first meeting to take stock of the progress made in implementation of the National Manufacturing Policy.
The board,chaired by commerce and industry minister Anand Sharma,also asked the finance ministry to incorporate provisions concerning exemption to units in National Manufacturing Investment Zones (NMIZs) from capital gains tax in the Direct Taxes Code (DTC) bill,pending in Parliament.
The manufacturing sector,which constitutes over 75 per cent of the index of industrial production,grew by a meagre 2.8 per cent in April while it contracted two per cent in May. The MIPB was established last year for matters pertaining to the implementation of the National Manufacturing Policy that aims at increasing the share of the manufacturing in the GDP to 25 per cent from the current 16 per cent by 2020.
NMIZs are envisaged as mega industrial zones with state-of-the-art supporting infrastructure. These zones would be entitled to several incentives including exemption from capital gains tax and a relaxed labour and environment policy to promote these zones.
The meeting was attended top officials from ministries including economic affairs,science and technology,and revenue,an official statement said.
Sharma also asked the labour ministry to convene a tripartite meeting to take a final decision on amending section 25 FFF (1A) of the Industrial Disputes Act,1947,which deals with compensation to workers in case of closure of mines following exhaustion of minerals.
He told the heavy industry department and the National Manufacturing Competitiveness Council to outline measures to strengthen the public sector industries in the capital goods sector in the short and medium term.
We had a review of the stage at which the various NIMZs are; issue which concern the states,the industry and the investors as well as the different departments. We will have a review after three months, Sharma told reporters here.