National Investment and Manufacturing Zones (NIMZ): Notes for UPSC

The National Investment & Manufacturing Zones (NIMZs) are an important instrumentality of the manufacturing policy. The NIMZ policy aims to galvanize the manufacturing sector by bringing in domestic and foreign investments. As an initiative by the government, this topic will be featured for sure in the IAS Exam.

What is the objective of NIMZ?

The main focus of a National Investment & Manufacturing Zone policy is industrial growth through collaboration with local state governments. An enabling policy framework will be created by the Central Authority that will give benefits through the development of infrastructure and State Governments will be encouraged to adopt the instrumentalities provided in the policy.

The main objective of Special Economic Zones is for the advancement of exports. while NIMZ is based on the idea of industrial growth that involves collaboration with the local government. The governments in question will benefit from increased economic growth and employment generation. The main differences between NIMZ and SEZ are in terms of size, infrastructural planning, regulatory procedures, and exit policies. 

The Major Benefits for Units within NIMZ

• A job-loss policy will enable units to pay suitable worker compensation in the eventuality of business losses/closures through insurance and thereby eliminate the charge on the assets.
• The developers of NIMZs will be allowed to raise ECBs for developing the internal infrastructure.
• Exemption from capital gains tax.
• The transfer of assets belonging to a firm that has been declared sick will be facilitated by the SPV of the concerned NIMZ.
• Soft loans from multilateral institutions will be explored for funding infrastructure development.
• Skill up-gradation programmes for new employees as well as for the existing employees in coordination with NSDC.

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Special Incentives for Green Technologies in NIMZs

• The environmental audit will be mandatory
• A water audit will be mandatory
• Exemption from water cess
• Ten percent one-time capital subsidy for units practicing zero water discharge
• Rainwater harvesting will be compulsory
• Under renewable energy, appropriate incentives under existing schemes will be available
• The incentive to obtain a green rating for buildings

Relevant questions regarding National Investment and Manufacturing Zones (NIMZ)

Why are industrial corridors the focus of the NIMZ policy?

Industrial Corridors recognize the inter-dependence of various sectors of the economy and offer effective integration between industry and infrastructure leading to overall economic and social development. Industrial corridors constitute world-class infrastructure such as high-speed transportation. Hence, it is the objective of NIMZ to improve these industrial corridors to better complement India’s overall export policy.

NIMZ – UPSC Notes:- Download PDF Here

How does NIMZ complement the Make in India initiative?

Make in India is a major new national programme by the Government of India designed to facilitate investment, foster innovation, enhance skill development, protect intellectual property and build the best in class manufacturing infrastructure in the country. With designated industrial townships, NIMZ can better facilitate the manufacturing sector and foster a policy of qualitative control.

How many NIMZ are there total in India?

There are three NIMZs presently. They are Prakasam (Andhra Pradesh), Sangareddy (Telangana), and Kalinganagar (Odisha, which has been granted final approval and 13 NIMZs have been accorded in-principle approval.

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