Sharma: Expect progress on manufacturing policy by Aug

New council discusses ways to accelerate manufacturing growth

With the government pinning hopes on the manufacturing sector for an increase in exports and to prop up growth,the reconstituted National Manufacturing Competitiveness Council NMCC today met for the first time to discuss ways to kickstart the national manufacturing policy.

Tata Group Chief Ratan Tata along with other industry leaders,including ITC Chairman and Managing Director YC Deveshwar and TVS Motor CMD Venu Srinivasan,attended the first meeting of the reconstituted NMCC here. Speaking to reporters after the meeting,Tata said the members discussed ways to remove hindrances and accelerate manufacturing in the country.

Asked what were the roadblocks,Tata said,Hindrances,in the sense,that things need to be resolved. Nothing is unresolvable.

It has been four months since the approval of the policy by the Cabinet. However,in the absence of notifications by ministries of labour,environment and finance,NMP has not taken off the ground.

Planning commission member Arun Maira said that three main issues were raised in the meeting land acquisition,complex business regulatory environment and lack of coordination between the government departments. The manufacturing policy envisages setting up national manufacturing and investment zones with relaxed labour and environment laws. It is expected to create 100 million new jobs by 2022. The manufacturing sector,which constitutes over 75 per cent of the IIP index,grew by 1.8 per cent in December 2011,compared to a growth of 8.7 per cent in the same month during 2010.

Commerce and Industry Minister Anand Sharma,present at the meeting,said by the end of March all departments are expected to notify the policy.

The policy,as such,is notified. There are some other department notifications that have to be aligned with the Cabinet decision that is happening. I am sure by the end of March it would happen8230; Definitely by August,this year,there will be some real progress on the ground, he said.

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However,Tata added,There may be many roadblocks on the way to make that NMP actually implementable but we are on that path,and I think its a tribute that a policy has been established and the government intends to stand by it.